Venezuela
Bordering the Caribbean Sea and the North Atlantic Ocean between Colombia and Guyana, most of Venezuela's population is concentrated in the northern and western highlands along an eastern spur at the northern end of the Andes, an area that includes the capital of Caracas.
Under President Nicolás Maduro, the ruling party's economic policies have expanded the state's role in the economy through expropriations of major enterprises, strict currency exchange and price controls that discourage private sector investment and production, as well as an overdependence on the petroleum industry for revenues. Some of the concerns in the country has faced in recent years include human rights abuses, rampant violent crime, high inflation, and widespread shortages of basic consumer goods, medicine, and medical supplies. Although the country had been hit with extreme hyper-inflation for several years, the economic scenario is getting better as inflation dropped to less than 50% in the fourth quarter of 2021.
The average salary per capita has plummeted in recent years. This has impacted the country's purchasing power, nearly wiping out national automobile production in the 2020-2021 period.
Chapter 1: Economic and business environment
| Demographics |
World Population Review |
|---|---|
| Capital | 2021 Caracas (population of 2.9 million) |
| Major cities | Caracas (2.94 million) |
| Languages | Spanish (official) |
| GDP | 2021
source: Center of Economic Knowledge for Freedom (Cedice Libertad)
|
| Unemployment rate | 40% (2019 est.)
|
| Main industries | agricultural products, livestock, raw materials, machinery and equipment, transport equipment, construction materials, medical equipment, pharmaceuticals, chemicals, iron and steel products, crude oil and petroleum products |
| Currency | Venezuelan bolivár |
| Interest rate | 53% (November 2021) source: Trading Economics |
| Fleet Maturity Index (scaling) | While annual car production was around 318,000 units in 2008, only 2,850 vehicles were produced in 2018, according Carabobo state entrepreneurs department Cavanez which represents auto manufacturers in the country. The problem, according to Cavanez, is that parts and components used to assemble vehicles need to be imported. Local affiliates are having problems acquiring dollars to accomplish their transactions as the currency is actually distributed by the local government. Since then, the scenario has only worsened. A total of 87 vehicles were produced in 2020 (the first year of the COVID-19 pandemic) and only one car in the first semester of 2021. |
| Political key info | Venezuela is currently (2019) debating who its President is. However, Juan Gerardo Guaidó Márquez has proclaimed himself as the country's interim president as Maduro's reelection last year has received widespread condemnation for electoral fraud. Besides being an engineer, Mr. Guaidó has been President of the National Assembly of Venezuela since 5 January 2019. Moreover, he is a member of the centrist social-democratic Popular Will party, and also federal deputy to the National Assembly, representing the state of Vargas. The world is mixed as to who they recognize as president. While countries such as Russia, Cuba, and Turkey favor Maduro, countries such as the United States, Brazil, and much of Europe favor Guaidó. |
| Inflation | 2022 686% considernig the year as a whole |
Chapter 2 : Automotive market, segments & sales
| Total Car park | 2021
Approximately half the cars are more than 15 years old. Regarding the rest, some 17% are 11-15 years old, 8% (6-10 years), and 1% making up the rest. source: Favenpa |
|---|---|
| New vehicle registrations (Cars, LCV, Trucks) | From January-June 2021, only one car was produced in the country, according to Venezuela's automobile manufacturers association Favenpa, and only 87 were produced in 2020.Regarding sales, 1,675 units were sold in 2020, down 19.1% from 2019. |
| Top 5 brands (total market) | 2020 Production/Sales by brand - Best to Worst Ford
Toyota
FCA
Chrysler
General Motors
|
| Model preference top 5 (total market) | 2017 1. Toyota Hilux (23.8% share)
|
| Dealer network (including fleet dealer network) | Battered severly by its economic and political crisis, many dealerships are either closed or empty and automobile factories - in 2018 - were seen to be operating at 10% their capacity. However, much of the country's automobile dealership infrastructure is still intact and waiting for changes that will put the country's industries back on track. According to Gabriel Briceño who is the president of Nueve Esparta state automobile distributors association Adane, the country is awaiting a "legal platform" which will assure investments, restart automobile production, and help citizens regain their purchasing power.
|
| Used car market/renewal cycle | Over the last five years, new vehicle sales in Venezuela has plummeted by some 98%. The country's used car market, however, has stayed afloat in some regions. It has actually helped the economy to some extent due to the demand for automobile mechanics. |
Chapter 3: Company car market
| Evolution fleet sales (last 5 years) | In 2019, commercial vehicles sales jumped 63% to 1,500 units from 919 (source: OICA) |
|---|
Chapter 4: Taxation & legislation
This section is empty…for now. Want to help us in filling it? Fill in your text in this section and become a wikifleet contributor!
Chapter 5: Car policies
This section is empty…for now. Want to help us in filling it? Fill in your text in this section and become a wikifleet contributor!
