Global Fleet updates Wikifleet Brazil, Mexico, Argentina
Wikifleet Brazil, Mexico and Argentina have been updated, Latin America’s three largest automobile markets, and the highlights by Global Fleet in this report are Fuel Prices, Car Sales, and Economies.
In the wake of the oil price war between Saudi Arabia and Russia earlier this year, the price of both gasoline and diesel around the world dropped by approximately 20% in 2Q20, giving fleet and logistics managers a break on the cost of operating their fleets.
On 15 June, the average price of petrol worldwide was US$0.95 while diesel was US$0.86. In the countries featured in this article, prices are lower across the board except for diesel in Mexico.
In Brazil, the average price of gasoline on the same date was US$0.76 and diesel US$0.59. Meanwhile, the prices in Mexico were US$0.82 and US$0.87 and in Argentina, US$0.83 and US$0.76 respectively.
The price of gasoline in Aguascalientes, Mexico was only MXN 15.99 (US$0.67) on 19 March as the value of the local currency dropped to record breaking lows that week (source: Shutterstock)
As for the last annual report on light vehicles sales, Brazil reported approximately 2.66 million new registrations in 2019 (+7.65%), boasting the best uptick year-over-year in Latin America, and also a top performer worldwide. Meanwhile, Mexico reported some 1.32 million units (-7.7%) and Argentina posted 459,592 units (-42.7%).
Best-selling car models in 2019 - Latin America as a whole
1. Chevrolet Onix
250,805 (+8.6% year-over-year)
2. Ford Ka
157,361 (-4.4% year-over-year)
3. Toyota Hilux
115,058 (-4.6% year-over-year)
4. Nissan Versa
111,357 (-10.3% year-over-year)
5. Volkswagen Gol
108,560 (-9.1% year-over-year)
Considering the Novel Coronavirus pandemic which has affected vehicle sales as well as production stemming from temporary automotive plant closures amid government quarantine orders, business activities in all three countries were negatively impacted by more than 50% in 2Q20.
However, in June, automotive plants in the countries are gradually opening up so production and sales numbers should start making a come-back but overall numbers in 2020 are still expected to be negative year-over-year.
In terms of economies, Latin America is dealing with hardships like most of the world in face of COVID-19 and one of the most impacted indexes is rising unemployment. While Brazil posted 12.2% unemployment in 1Q20, Mexico was only 2.9% and Argentina, 8.9%.
As the pandemic didn’t seriously start hitting Latin America until April, the quarantine periods ordered in the second quarter of the year will likely result in significantly higher unemployment rates. This may bounce back to some extend in the second semester of the year though.
Another index seeing changes in 2020 is benchmark interest rates which are falling as governments attempt to stimulate investment. In May, Brazil’s interest dropped to a record 3%, Mexico 5.5%, and Argentina 38%. As there are still uncertainties regarding the health crisis, we have yet to see how economies will fare in the second semester of the year.
For more on the Wikifleet profiled countries, visit here.