Industry Trend Analysis - Latin America Autos: Leading The Global Sales Race - AUG 2017

BMI View: Rising consumer confidence and spending in South America, particularly in Argentina and Brazil, as well as exchange rate stability in commodity-focused economies and an uptick in spending on commercial vehicles in Central America will all act as the main drivers of vehicle sales growth across Latin America.

A comparison of our regional vehicle sales forecasts for 2017 shows that Latin America will be the fastest growing regional autos market globally as it emerges from the mire of 2016 ( see chart below). We forecast vehicle sales in the region to expand 6.3% to almost 6.23mn units comprised of 6.6% expansion in both passenger car and commercial vehicle (CV) sales for the countries for which a breakdown in vehicle sales by segment is available. Highlighting the strength of the regional recovery, we forecast five out of the 17 Latin American vehicle markets we track to grow at double-digit rates, with only Venezuela's new vehicle market posting a contraction in 2017.

The trends driving Latin America's market into positive growth territory revolve around four dominant themes:

  • Latin America: From Laggard To Leader
    Vehicle Sales Forecasts, % chg y-o-y
    f = BMI forecast. Source: BMI

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