Brazil and Argentina continue to decline in 2015
- Brazil and Argentina (the two biggest car markets in South America) continued to decline in 2015 after poor results in 2014, both in terms of production and registrations.
- In 2015, vehicle registrations (PC + LUV) in Brazil will fall to 2.5 million units, one million less than in 2014 (-28.6%). The fall in registrations reflects the recession period now seen in Brazil (and that should continue in 2016) but also an aftermath effect of lower taxation on the purchase of vehicles which was granted in 2012 and that "artificially" boosted the automobile market.
- Argentine registrations (PC + LUV) will fall by 600 000 units against 672 000 units, which is less than in 2014 (-11%). The weak economy in 2015 is the main cause. However and contrary to Brazil, Argentina begins to emerge from the aftermath effect of reduce taxation on the purchase of vehicles whose selling price was greater than 170 000 pesos (15 000 Euros).
- In terms of production, Brazil produced nearly 2.4 million vehicles (PC + UV), ie -21% compared to 2014. That of Argentina will amount to just over 500 000 units (15% compared to 2014). It is the poor economic situation in Mercosur which explains the fall of the automotive market and consequently production which has its main sales markets in this region.
- Auto production in Brazil and Argentina is largely elapsed on the South American continent and very few beyond the border. The nature of the products produced here (small cars, often old design, pickups from lower segments, cheap cars) requires this geographic restriction. While some models can even be exported to Mexico, almost none can be sold in the US or Canada.
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