13 Dec 22

Fleet LatAm Business Networking Group: Remarketing remains strong in most countries

The last Fleet LatAm Business Networking Group (BNG) meeting of 2022 has just wrapped up, and the topic this time around mostly revolved around remarketing in countries such as Mexico, Colombia, and Chile.

Taking place on Tuesday (13 December), it was supported by experts from vehicle leasing and mobility solution companies Localiza&Co, Salfarent, Arval, and ALD Automotive, as well as video telematics firm Lytx and MSD pharmaceuticals.

Following a few words from MSD Latam EHS manager and Fleet LatAm manager of the year 2022 David Trujillo (pictured left) who stressed the importance of safety and sustainability in fleet operations, the 90-minute session counted on remarketing insights from executives representing ALD Automotive in Mexico, Arval (Colombia), and Salfarent (Chile). 

In Latin America, the outlook of used car sales really depends on the country, according to the executives.

In Mexico, used car financing represented 17% of the market in 2022 compared to 14% in 2021. While the number of used vehicles financed rose 23% this year compared to last, the value of the used car market increased some 18% year-over-year.

“This was due to the shortage of semiconductors for manufacturing as well as post-pandemic logistics issues,” ALD Automotive Mexico Commercial Director Olivier Deleau said during the meeting.

“Besides ALD Carmarket, among the local companies supporting the B2B market in terms of remarketing are Kavak, OLX autos, Click Autos, and VendeTuAuto,” added ALD Automotive Mexico Operation Director Elzbieta Koska.

left to right, Olivier Deleau and Elzbieta Koska (handouts)

In Colombia, used car sales was up in 1H22, but mostly down in the second semester, still showing an uptick for the year. “From January-October 2022, used car sales was 2.4% up compared to the first 10 months in 2021,” Arval Colombia Sales & Marketing Director Francisco Fuentes Cardenas said.

The scenario differs in Chile, however, as it looks like the market peaked last year. “During the first 10 months of 2022, used car sales was actually 27.5% down year-over-year,” Salfarent manager Franco Capurro Reposi said.

left to right, Francisco Fuentes Cardenas and Franco Capurro Reposi (handouts)

Member Presentations

Also featured during the meeting were two BNG Member presentations. While Localiza&Co Executive Director Joao Andrade explained the strategy behind Latin America’s largest local player (537,000+ vehicles), Lytx Latin America Sales Director Fernando Ferreira explained the importance of safety and security in fleet.

left to right, Fernando Ferreira and Joao Andrade (handouts)

“Following the coming together of Localiza and Unidas (now known as Localiza & Co.), we really see great growth potential in the fleet rental industry as it only represents 8% of corporate fleet in Brazil,” said Mr. Andrade, noting that this is especially so for trucks as only 1.5% of the Brazilian fleet is leased.

Safety and security is key. “Latin America is home to two of the countries with the highest risk of crime when it comes to occurrences during ground transport activities, being Mexico and Brazil, said Mr. Ferreira.

And don’t take selfies, talk on the phone or do any texting while driving. This increases the likelihood of an accident by 400%, he added.

Fleet LatAm 2023

Also announced by Fleet LatAm chairman Pascal Serres (pictured right) during the meeting was the agenda set for the Fleet LatAm 2023 plan. Besides expert E-books, video production, and webinars, something is planned nearly every month in 2023 to keep you abreast of the market. 

•    February: online event
•    March: E-book on Fleet Trends in Latin America
•    April: online event
•    May: live Latam session at Global Fleet Conference in Portugal
•    June: E-book on technology for your Latam fleet
•    September: Fleet LatAm Conference in Mexico 
•    October: E-book on lessons learned from conference

Moreover, Fleet LatAm is eyeing the possibility of organizing a second face-to-face conference in 2023 (location to be announced). More information will be available in the coming weeks. 

Happy Holidays to all. See you in 2023!

pictured left, Fleet LatAm Editor Daniel Bland and Pascal Serres at Fleet LatAm Conference 2022 in Mexico City (source: Fleet LatAm)

To join the Business Networking Group, contact Pascal Serres: pserres@nexuscommunication.be

Authored by: Daniel Bland