Venezuela: Car sales remain in the doldrums
August 6, 2013
In July, car sales fell 21.5% over the same month last year, reaching just 8,686 units, according to figures from the Venezuelan Automotive Chamber (CAVENEZ, Camara Automotriz de Venezuela). The reading follows the 39.1% drop in June and marks the eighth drop in nine months.
In the 12 months up to July, car sales reached 117,868 units, which is down 10.6% from the level observed in the same period last year (June: -8.3% year-on-year). Car sales remain at less than a quarter of the peak of 491,899 units recorded in the full year 2007. Extreme supply shortages following government restrictions on assembly plants and importers have severely hampered sales of vehicles in recent years.
Given the limited availability of timely data on the real sector, analysts often use car sales as a proxy for private consumption. LatinFocus Consensus Forecast panellists expect private consumption to fall 1.0% this year, which is down 0.1 percentage points over the previous month's estimate. Next year the panel sees private consumption growth at 2.1%.