It was estimated for the brazilian automotive market to lose more than 22% of revenue in 2020, when compared to the previous year. The reality, though, was different. The loss remained below the expected, and some companies even recorded a 50% revenue increase. So, despite it being a year of economic hardship because of the pandemic, 2020 was clearly better than the expected. Moreover, a good portion of this scenario is due to economic recovery and a new trend appearing in the brazilian automotive market.
Even after economic reopening, with millions of brazilians going out for work again, the way that people navigate around the city changed. And it will probably keep changing, because public transportation usage dropped in many brazilian cities. According to research from a platform called Moovit, 36% of passengers started using less public transportation since the beginning of the pandemic and started looking for options to avoid crowded public transportation.
Even cab and shared ride services rates dropped, because users don’t feel comfortable using the same vehicle many others used on the same day. As a result of this behavior of trying to avoid contact with others in transportation, the sales of new vehicles intensified and started to recover. Used car sales also increased, which was a surprise in 2020, and it resulted from the same behavior: more people looking for individual transportation – considered safer during this pandemic.
A new trend
Besides the economic recovery, a new trend appeared in the brazilian automotive market, which is expected to help give it a boost: car rents and subscriptions. This new trend appeared because even though plenty of users have opted for individual transportation as a safer way to move around, others didn’t. Some don’t have the money, or just don’t want to invest and buy a car, and this is when renting and subscription services come in.
These services offer monthly or yearly plans, and in addition all the car documentation, taxes and insurance. This turns out to be a great option that allows the convenience of having a car with the company basically taking care of everything for you, without the pressure of financing. All you have to care about is renewing the rent or subscription when needed, and filling up your tank.
To sum up, all this data demonstrates that the brazilian automotive industry is in full recovery, ready to come back strong. We are delighted to witness things returning to normal, especially the automotive market which is so important. And as a company with experience in research in this area, we are totally ready to help you and your business return to your activities in the best way possible.