Venezuela

Last modification: 15 fév 19
Introduction: 

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. Hit with extreme hyper-inflation, current concerns in the country include human rights abuses, rampant violent crime, high inflation, and widespread shortages of basic consumer goods, medicine, and medical supplies.

 

Chapter 1: Economic and business environment

Demographics

2018

  • Population of 31.7 million
  • Growth rate of 1.21%
     
Capital

Caracas (population of 2.94 million)
 
est. 2018
 

Major cities

Caracas (2.94 million)
Maracaibo (2.18 million)
Valencia (1.73 million)
Maracay (1.18 million)
Barquisimeto (1.19 million)

2018
 

Languages

Spanish (official)

GDP

2018

  • US$172 billion, down 18%  year-over-year
  • US$5,4259 per capita


 

Unemployment rate

2017

27.1%
 

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

22.6%

February 2018

Political key info

Venezuela is currently (2019) debating who its President is.

Considering the latest elections, Nicolás Maduro Moros has been the 46th President of Venezuela since 2013. He previously served as Minister of Foreign Affairs from 2006 to 2013 and as Vice President of Venezuela from 2012 to 2013 under President Hugo Chávez. Unfortunately, under his rule, the country has been facing a lingering economic crisis and extreme hyperinflation. 

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

2019

  • Highest inflation in the world
  • 80,000% per year if calulating purchasing power parity (PPP), much higher if not

Chapter 2 : Automotive market, segments & sales

Total Car park

2007

  • 4.12 million in 2007, based on a population of some 28 million at the time.
  • Approximately one in every seven people

 

 

New vehicle registrations (Cars, LCV, Trucks)

2017

  • In 2017, new automobile registrations were down for the fifth consectutive year, falling 18.2% year-over-year to 2,461 units. 
  • Considering passenger cars, light commercial vehicles, heavy trucks and busses, a total of 14,080 units were sold in the country in 2017, more than double the previous year. 
  • Hit by a lingering economic crisis, new vehicles sales from 2012-2017 plummeted 98%.  

 

Top 5 brands (total market)

2017

1. Ford (45.8% share)
2. Toyota (45.6% share)
3. Jeep (5.9% share)

 

Model preference top 5 (total market)

2017

1. Toyota Hilus (23.8% share)
2. Ford Explorer
3. Toyota Fortuner

 

Dealer network (including fleet dealer network)
Although battered severly by its economic crisis, a significant part of Venezuela'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 4: Taxation & legislation

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Chapter 5: Car policies

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Chapter 6: Funding methods

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Chapter 7: Fuel

Venezuela has the lowest priced gasoline in the world.

Average gasoline price per liter: US$0.01

World average: US$1.09
(est. February 4, 2019)

Chapter 8 : TCO components

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Chapter 9: Safety, insurance and telematics

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Chapter 10: Environment

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Chapter 11: Mobility

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Chapter 12: Key trends to watch

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