Venezuelan vehicles market falls due to the global pandemic affecting sales. Indeed, Full Year 2020 sales have been 1.675, down 19.1% compared to 2019. Ford grows impressively, menacing Toyota’s leadership.
Economic Environment
Economic conditions remain bleak in H2: Oil output in September inched up marginally from August, but remained close to June’s near 80-year low. Moreover, the U.S. announced further sanctions on previously permitted oil-for-fuel swap deals in early November, with the move set to exacerbate already chronic gasoline shortages.
Consequently, crude inventories are likely to swell, and, with few export destinations available, production could be cut further as a response.
In politics, embattled opposition leader Juan Guaidó received further bad news—following last month’s UK court judgement rejecting his claim for control over USD 1.0 billion of gold held by the Bank of England—after a U.S. judge ruled PDVSA 2020 bonds are valid and enforceable, dismissing his claims the bonds were fraudulently issued without National Assembly approval. This comes amid the fraught run-up to December’s parliamentary elections.
Market Trend
The Venezuelan vehicle market has been affected in 2020 by the global COVID-19 pandemic, which impacted sales significantly.
The market was the third-largest in South America a few years ago, before the economy was destroyed by dictatorships. Just in 2012, the market declined at 126.000 units, but in the following six years it dropped to near zero. Indeed, according to data released by the CAVENEZ, the local association of car manufacturers, in 2017 total vehicle sales have been 2.461, down 18.0%, while in 2018 crumbled at 1.415 units.
In 2019, the market started recovering. Indeed, the Full-year ended at 1.723, up 21.7% from the previous year.
Full-Year sales for 2020 have been 1.675, reporting a 19.1% decrease compared to 2019.
Brand-wise, this year the leader Toyota (-24.4%) lost 2.8% market share, followed by Ford (+9.4%) which gained an impressive 9% market share. Suzuki (-27.7%) was in the third position and lost 0.9% market share.
The most sold model in the country is the Toyota Hilux with 282 sales, holding 16.8% market share.
