Waiting for buyers: There are 240,000 zero kilometer vehicles in stock – Economy



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Since the sharp peso devaluation at the end of April, the automotive sector has been in crisis. After a record start of the year, sales fell, and in November, 0-kilogram patents fell 45%; so far in December, they show a drop of about 37%.

According to sector estimates, among manufacturers, dealers and importers, there are about 240 thousand units waiting buyers.

But the situation is even worse, since that number comes from cars produced or nationalized. It does not take into account those who are in port tax deposits to be admitted in the country before the payment of taxes. Business sources revealed to the newspaper Financial scope that in this situation there could be about 20,000 km like walking. Thus, the overall number would be about 260,000 vehicles.

In good sales months – an average of 70,000 units – this volume would represent a stock of four months, but taking into account the current level of activity, the situation worsens. By 2019, companies in the industry estimate that the market will be below 600,000 units. The most optimistic believe that this can be overcome (they are imagining a second-half growth), but there are more pessimistic estimates that even estimate that can approach 500 thousand, based on the projection of the last three months.

Taking the fair value of 550,000 cars, the current 0km stock in the warehouses can reach practically for a minimum period of six months (normally there is one month of stock in dealerships and another month in factories).

That is, half a year of sales in the warehouses, so that it would not be necessary to produce or import any 0 km until that date. It is true that it may happen that, according to the taste of consumers, some models are missing and others are missing, but taking the amount of 0 km, the market is fueled until after next June.

This excess supply of cars has a clear consequence. There are several terminals that have your team suspended due to less activity. Only the demand of Argentina for Argentine cars justifies the maintenance of production. The other effect is that manufacturers, importers and dealerships are offering important bonuses to reduce inventories.

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