From November 23rd to 25th São Paulo (Brazil) hosted the 21st edition of the Fenabrave Convention, an event organized by Brazil’s Automotive Vehicles
Distribution National Federation attended by about 2,300 participants each year.
What is immediately striking is the dramatically different market scenario and positive atmosphere that can be perceived by discreetly eavesdropping on conversations among businessmen and managers crowding the exhibition area and the workshop rooms.
The Brazilian market is definitely booming with an average of 16 cars every 100 inhabitants (in Europe the average is 60 cars every 100 people, in the USA the figure rises to 80/100).
The economic growth rate, generally coupled with an increasing inflation, are pushing the interest rates on loans and financing upwards; this results in average car loan interest rates as high as 22%. On average, companies pay a yearly interest of 14% on loans and long-term credit lines.
There are several different topics under discussion at the convention, such as encouraging sales of services, developing of the post-sales business and managing Dealers’ web activities. Brazil is a highly strategic market for many multinationals as well as for many carmakers, as underlined by Peugeot CEO and President Philippe Varin. In his speech during the main session of the three-day convention, M. Varin illustrated the French manufacturer’s investment plans in Brazil for the next few years.
The following day, during the international round table representatives of several global associations contributed an overview of the market scenario in their respective areas; particular relevance was given to Stephen Wade, chairman of NADA, USA’s National Dealer Association. Mr. Wade’s speech highlighted the different stages of the crisis experienced by overseas dealers over the last three years and allowed for a cautious degree of optimism when describing the constant growth shown by the market in 2011.
The convention came to a close on Friday afternoon with the presence of Brazil’s former president and the vice-governor of the state of São Paulo, who illustrated the country’s development plans for the next few years and mentioned several future investment projects aimed at improving infrastructures, including the road network.