May 29, 2020 (Market Insight Reports) -- The report presents an in-depth assessment of the South America Automotive including enabling technologies, key trends, market drivers, challenges, standardization, regulatory landscape, deployment models, operator case studies, opportunities, future roadmap, value chain, ecosystem player profiles, and strategies. The report also presents forecasts for South America Automotive investments from 2019 till 2024.
The South America Automotive Market is anticipated to grow at a CAGR of 4.79% during the forecast period, 2019-2024.
The South America Automotive market is highly competitive and consists of a number of major players. Top Companies like OEM (by Vehicle Brands), General Motors, Toyota Motor Corp., Volkswagen AG, Fiat Chrysler Automobiles NV, Ford Motor Company, Honda Motor Company Ltd., Hyundai Motor Company, Nissan Motor Company Ltd., Groupe Renault, Daimler AG, Kia Motor Corporation, Auto Parts & Components, Robert Bosch GmbH, Continental AG, Denso Corporation, Aptiv PLC, HELLA KGaA Hueck & Co., Webasto, Valeo Group, Auto Financing Suppliers, Banks, Santander Bank, Banco Bilbao Vizcaya Argentaria (BBVA), Ita �? Unibanco, Automotive Financial Dealers, Toyota Financial Services, GM Financial (Banco GMAC), VW Financial Services among others.
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Scope of the Report
The South America automotive industry outlook covers the growing demand for passenger cars and commercial vehicles in the country, Investments done by OEMs to establish their presence in South America, and market shares of OEMs.
The South America automotive industry has been segmented by vehicle type, parts & components type, automotive service industry type, and automotive financing industry type.
Key Market Trends
Brazil, Argentina, Chile, and Ecuador to Drive the Market
The passenger car market in South America has witnessed healthy growth during the first half of 2018. Car sales in the region have increased by 7.1% to 1.39 million units as compared to 1.30 million units in Q1 of 2017. This growth was primarily contributed by the Brazil and Argentina Markets.
The Brazilian automotive industry’s output has fallen consistently, following the economic recession that affected production and sales alike. However, the industry is now gathering momentum, due to the improvement of the economic indexes directly influencing consumer confidence and an increase in credit availability to support the country’s light-vehicle market and strong export demand from South American countries.
– As a result of low-interest rates on cars and improving customer confidence in Brazil, the automotive sales in the country increased by 14.8% to 527,000 units in Q1 of 2018 as compared to 459,700 units in Q1 of 2017.
Argentina is the second largest passenger car market in the South American region. Although the country witnessed a drop in sales during Q3, strong incentive campaigns by OEMs is expected to boost the sales of passenger cars over the forecast period.
The passenger cars and light commercial vehicle sales have increased by 42.4% in Ecuador and 17.6% in Chile during Q1-Q3 2018.
Auto Policies and Incentives Supporting the Growth of Brazil Automotive Industry
The country is the largest market and the largest producer of automotive in the South American continent. In 2018, Brazil alone accounted for about 50% of the vehicles of all types sold in the region. New vehicle sales increased by 5.2% to 2.87 million units in 2018 as compared to 2.69 million units in 2017.
Traditionally, Brazil had protectionist policies in place as a part of its Inovar Auto policy to support the local automotive companies from imports by offering tax credits and other incentives. However, the outcome of the policy was to increased domestic competitiveness and a decrease in imports. The policy did not have any provisions for export promotion, which impacted the industry when domestic demand declined.