Light Vehicle Sales in Brazil Drop 77 Percent in April, Says FENABRAVE

RIO DE JANEIRO, BRAZIL – In April, auto and light commercial vehicle registrations totaled only 51,362 units, a 77 percent drop in the annual comparison, according to the National Federation of Automotive Dealerships (FENABRAVE) on Monday, May 4th.

Dealership network performance was strongly impacted by the novel coronavirus pandemic.

In the four-month period, 583,905 light vehicles were registered in the country, a 27.13 percent decrease over the same period last year.

“Regrettably, we are back to sales levels at the start of the decade and, in the sector as a whole, to the 1992 figures″, says Alarico Assumpção Júnior, president of the FENABRAVE, in a note.

Heavy vehicle registrations (trucks and buses) dropped 58.8 percent in April to 4,370 units. In the year to date, sales fell 21.7 percent to 29,888, according to the FENABRAVE.

Return to activity

According to the organization, today there are some 7,300 dealerships in the country and a good part of them are closed or partially inoperative.

Few states have authorized the opening of dealerships for full operation, which includes sales of vehicles, parts and maintenance services. “In states where the quarantine has been relaxed, the drop in the sector has been lower,” says the president of the FENABRAVE.

The organization has urged the federal government to fully reopen the network’s stores. Assumpção emphasizes in the note that the sector is ready to return “with full responsibility and strictly following all health protocols recommended by the WHO, the Ministry of Health and other health authorities”.

“It is worth emphasizing that dealerships are not locations that lead to crowds,” says the president. He adds that the network was included in Decree No. 10,329, which lists the essential activities during the pandemic. “Dealerships need to be open for vehicle maintenance, which ensures mobility.”

Source: Exame