Friday , November 27 2020

by 2019 it is expected to drop to the same level ten years ago

Sector in crisis

The sector expects to close the year with 590,000 units sold. They warn of a drop of 36% in 2019, the market will be similar to 2009.

While they think it will end this year with 590,000 sold motorcycles, manufacturers and importers of this sector warned that in 2019 they will continue in crisis and are already expecting the cake to be reduced to 400,000 units.

This means that they are already expecting a strong retreat by almost 36%, realizing that the reasons for this negative scenario will also affect the economy of the country next year.

Moreover, if you compare the numbers with those of the past 10 years, the motorcycle market in Argentina will drop to almost the numbers recorded in 2009, when the sales scratched 390,000 units.

And it will be reduced to half of what was achieved in 2013, when a historic record of 718,226 units sold during those twelve months still was ruled by Kirchner.

Then, in 2014, it dropped to 483 736 sold motorcycles, which will again fall by 0.5%, coinciding with the arrival of Mauricio Macri in the country's presidency in December 2015.

A year later, data from ACARA (the business association that brings together motorcycle concessionaires across the country) reflects another withdrawal when they sell about 474,748 motorcycles in the country.

Meanwhile, in 2017, sales rose again to over 680,000 units, a figure that will fall again this year as part of a contraction, which will also be felt in 2019.

"This is a worrying scenario for the sector we will have to go through," warns Gustavo Bassi, head of the ACARA Motor Vehicle Division, for which the sector is not slipping away from the country's economic crisis.

"The numbers continue to fall, with a market that is not immune to what is happening at a general level," adds the businessman who also identifies the high tax burden and increases unfair competition as two of the reasons leading the sector to suffer from the current strong contraction.

"We want the authorities to take into account the claims for internal taxes that affect our business and which can mean the beginning of a more in-depth debate on other issues we face, such as the lack of respect for market rules and the fight against informality. "

Bassi participated in a conference organized by ACARA to review the sector's behavior this year and analyze the prospects for 2019 along with other business associates who also group dealerships.

"At some point we thought we could achieve a record this year, because we came in 2017 that exceeded expectations, but now we have to give in to the fact that next year will also be negative," admitted Bassy.

However, it ensures that the business organization is working on re-activation measures, with agreements with several banks to provide cheaper and contributory funding.

This adds an agreement with ART Prevention to be able to offer insurance policies of accessible values ​​as incentives to somehow overcome the negative outlook that needs to go through the sector.

For Basi, this is a scenario that can be reversed in the medium term, "as long as we compete in the illicit business that plays an important role, as well as the high costs we have in terms of freight, taxes and other types of costs that affect the profitability of concessionaires. "

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