Brazilian market up 7.4% over the first nine months of 2017
- The Brazilian market (PC + LCV) increased by 24.5% in September 2017, the best monthly figure recorded this year, and confirms the rebound of this market after four years of uninterrupted decline. On the 2017 9-month total, the Brazilian market grew by 7.4% to 1.62 million units, while it decreased by 20% in 2016, 26.5% in 2015 and 6, 5% in 2014. Indeed, between 2012 and 2016, this market had fallen by almost half.
- Confidence is returning little by little, after a long period of political instability. Today, political stability seems to be recovering.
- The signs of a forthcoming restart of the market were also observed in the second half of 2016 (see chart). At the current pace, the Brazilian market could reach 2.25 million units over the whole of 2017, which represents a 10% increase compared to 2016. The road will therefore be still long before reaching the figures for 2011 (3.6 million) and 2012 (3.8 million).
- Government incentives that encourage manufacturers to establish a long-term presence in Brazil, replacing imports, will play a full role when the market rises, since the Brazilian market has never been as open as it is today. 25 locally-producing brands compete against each other, compared to 17 in 2012. Four brands occupy 52% of the market in 2017: Chevrolet (17%), Fiat (13%), Volkswagen (13%) and Ford (9%).
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