Market data: how is the automobile sector in Santa Catarina

The month of February was a good period for the sale of new, used and used cars in Santa Catarina, according to data from the local version of the National Federation of Automotive Vehicle Distribution.

The entity, which represents 538 different dealerships in the state that work with cars, light commercial cars, tractors, agricultural machinery, trucks, road implements and motorcycles, recently released the results for the month of February in Santa Catarina, bringing good news regarding the month of January.

According to the institution's survey, the month of February 2020 saw an increase in sales compared to January of the same year. In the first month of 2020, 14.289 units were sold. In the first month of February, there were 14.387 units.

The difference seems small, but it becomes significant when we compare only the working days. Regarding working days, February had 23,1% more sales than January.

However, the month of February 2020 started off weak for the automotive sector. In February and January, there was a small drop of 1,93% in sales compared to the same period in 2019.

With arrival of the coronavirus in the state in March and the prospect of the state closing or going into quarantine during April, the current projection is for a very negative first half for the sector (so it will also be for the entire economy in general). However, a more positive second semester is already projected for Santa Catarina and other Brazilian states.

For now, it's not just bad news. There are also some additions and considerable good news in Fenabrave's data.

To give you an idea, there was an increase in sales of light commercial cars and automobiles between February and December. Including an increase above the average: 2,43%, resulting in a total of 9.536 more units sold. However, there was still a drop in the segment compared to 2019, but only by 0,82% this time.

The motorcycle sector, however, had a very bad start to the year and an even worse February. Compared to January 2020, the decrease in motorcycles sold was 4,14%, resulting in 3.010 units sold against 3.140 in January. In relation to 2019, the accumulated of the segment registered a fall of 2,84%.

Julio Schroeder, president of Fenabrave-SC, commented on the drop in sales saying that it is normal to have a first quarter "historically slower". Among the reasons for this are school holidays, carnival and the payment of commitments at the beginning of the year such as IPVA, IPTU and others.

However, he estimates an annual growth for the segment of 10%, although the number should be readjusted, after we know the real impact of the coronavirus in the country.

One region that did not do very well in February, but is not bad in general, is the Greater Florianópolis region. In January, the area registered 2.806 units of motor vehicles of all types, a decrease of 9,04% in relation to January this year. In relation to the accumulated of the first two months of 2019, the region recorded a drop of only 0,97%.

One of the reasons for the Greater Florianópolis Region not having such a sharp drop compared to last year is that used car dealerships in Florianópolis are selling well in this period

Trade in used cars in florianopolis registered high in recent months, which allows the region to have a greater share in the number of sales in the state of Santa Catarina.

In the northern region of the state, despite a drop between February and January this year (February had 2.595 registrations against 2.615 in January), the area actually records a growth of 0,75% compared to the accumulated in 2019. .

In the Planalto Serrano region, the drop in sales in February compared to January was small: only 1 cart, which corresponds to a 0,18% decrease. However, the fall in the accumulated with the previous year is greater: 4,58%.

The southern region of the state also presents a year-to-date decline. In fact, it is the one that represents the biggest drop of all areas of the state: 9,33% less sales than in 2020. However, the area recorded an increase in sales in February compared to January: there were 1.834 units sold against 1.812 in the previous month.

Finally, the Vale do Itajaí Region had the best February in 2020. The area registered 5,32% more vehicles this month than in January (4.195 against 3.983). However, in the accumulated compared to 2019, the region recorded a drop of 0,15%.

Now, it remains to see the March numbers (which will be released soon) and wait for the performance in April, which could be the worst of the year because of the coronavirus. Depending on how the situation develops, maybe in May and June the market will return to normal.