Venezuela Retail

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Venezuela: Drop in car sales eases slightly in August

September 5, 2014

Annual car sales plummeted 79.8% over the same month last year and reached 1,681 units in August, according to figures from the Venezuelan Automotive Chamber (CAVENEZ, Camara Automotriz de Venezuela). The reading followed the 81.8% decline recorded in July and marked the eighth consecutive month of contractions exceeding 75%.

In the 12 months up to August, car sales reached just 36,079 units, which was 68.7% lower than in the same period last year (July: -63.7% year-on-year) and marked the lowest level of units sold since records began in 1997. Car sales currently total just a fraction of the peak of 491,899 units recorded in the calendar year 2007. Extreme supply shortages due to government restrictions on both assembly plants and importers have severely hampered sales of vehicles in recent years.

Meanwhile, the government and the Central Bank continued not to deliver relevant economic data for several indicators, including inflation, the scarcity index, estimates for GDP, budget balance, balance of payments and external debt.

Given the limited availability of timely data for the real sector, analysts often use car sales as a proxy for private consumption. LatinFocus Consensus Forecast panelists expect private consumption to decline 2.0% this year, which is down 0.3 percentage points from the previous month’s estimate. In 2015 the panel sees private consumption growth at 1.1%.


Author: Ricard Torné, Head of Economic Research

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Venezuela Retail Chart


Venezuela Retail August 2014 0

Note: Year-on-year variation and 12-month sum of domestic car sales in thousand units.
Source: Venezuelan Automobile Chamber (CAVENEZ).


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