Wikifleet updates Latam BIG 3: Brazil, Mexico, Argentina
The Wikifleet pages of Latin America’s three largest vehicle markets have been updated, being Brazil, Mexico, and Argentina.
Whether political and economic, or fleet and mobility-related, a lot of changes have been taking place in Latin America. To keep up with the times, Global Fleet made a few updates and here are some of them.
President Jair Messias Bolsonaro (PSL party) has almost completed his first year in office. With inflation under control but unemployment near 12%, there have been some ups and downs throughout the year. Only time will tell how the rest of his term will pan out.
One thing to highlight this year is that the country’s Selic benchmark interest rate hit a record low of 5%. As such, more companies are transitioning their fleets from outright purchases to fleet management or even full-service leasing as they seek to focus on their core businesses.
In the latest annual report, 3.23 million new vehicle registrations (cars, LCVs, trucks, buses, motorcycles) were reported in 2018 or approximately 2.17 million units if only considering cars and LCVs (13.7% up year-over-year). Of this, nearly 200 were full electric vehicles and some 2,800 were hybrids.
In the first semester of 2019, to push the vehicle market in the coming years, FCA announced US$4 billion in investments and General Motors announced US$2.5 billion in investments in the country.
Up north, while passenger cars, pickups, and LCVs fell 11.5% in 2018 to 883,043 units (1,785 being electric or hybrid), performance in 2019 has been slightly better, falling by only 6.5% in January-July.
Fuel prices in the country have been on the rise, reaching an average of US$1.06 per liter in October, so non-plugin hybrids are slowly becoming a more attractive option for fleet managers.
Impacted by fuel theft in 1Q19, a petrol station in Mexico City closes down due to lack of fuel supply (source: Shutterstock)
The third-largest fleet in Latin America has been struggling economically for more than a year.
Despite attempts of state reform and commercial openness by President Mauricio Macri, the country’s economy is facing 51% inflation and a benchmark interest rate of 63%. President-elect Alberto Fernández will be taking office on 10 December.
In terms of sales, 802,992 light vehicles were registered in 2018, down 10.9% year-over-year. Sales in the second half of 2019, however, do look better. Let’s see if it will continue along with the new administration.
As we get closer to diving into 2020, make sure to get the insight you need from Wikifleet, a useful tool in helping you make your fleet and mobility decisions of the future.