“Although the market is growing slightly compared to last year, there is still a very large potential ahead linked to factors of the context such as the lack of products worldwide or the exacerbation at the domestic level due to inflation,” he told Télam. the secretary general of the CEC, Alejandro Llamas.
The manager maintained that this situation is not homogeneous between the different models, since the vehicles of national production and Mercosur have a higher level of preponderance with respect to those from third markets.
Given this context, importers or representatives of international firms in the country seek to design their own strategy to have a minimum supply in the market, among which the decision to concentrate on certain products stands out.
“In the market it is assumed that the more open products there are, the more competition there is. This would produce a drop in prices that does not always occur due to a ‘delicate balance’ linked to business design policies,” Lamas said.
Used cars
This circumstance affects the final decision of potential buyers, who end up opting for other types of models, either due to lack of supply or delays in deliveries.
This largely determined the purchase of second-hand vehicles, a market that also has limitations.
“By following the shortage of certain types of products, the stock of the newest used ones also begins to run out because the newest used one enters the market, changing it for a 0 kilometer as the main factor,” said Lamas.
Regarding the lack of stock in the used segment, the director of the CCA expressed -looking to the future- his support for the draft Law for the Promotion of Investments in the Automotive-Autoparts Industry and its value chain, because it would allow with a productive matrix for the country based on certain production models.
“We are betting on being 1 of the 22 countries that manufactures cars in the world. That gives us heavy industry, technology, knowledge, and above all a development matrix that favors the industry to prosper and move to the domestic market, so Therefore, it is essential to have a model that allows producing and exportingLamas said.
Cars: market characteristics
In Argentina, the main concern when purchasing a unit is focused not only on prices but also on the maintenance of the vehicle, remarked the secretary general of the CCA.
“On the one hand we have to understand that the most important condition that determines prices is given by the level of supply and demand that there is, in parallel the family economy appears, that is, how maintenance costs can influence,” Lamas said.
Regarding financing, in the first half of 2022, 43,815 units were sold through this mechanism, equivalent to 5.6% of total used sales, according to a report by the Kavak company.
The online sales firm had in that period an average higher than that registered in the market in general, due to the fact that 16% of its operations were with financing.
Those who buy and sell used cars the most are people between 35 and 45 years old, who prioritize swap operations, according to Kavak numbers. Regarding the local car market, cThus, 8 out of 10 units sold in the country are not 0 Km.
Specialists describe this market as “very fragmented” since around 90% of transactions are carried out between individuals, without the intermediation of dealers or authorized sales outlets.
Source: Ambito
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