The automotive market in 2021 was full of uncertainty, good and bad times. It was truly a rollercoaster of emotions in this sector that is so important to the Brazilian economy, being responsible for almost 25% of Brazil's Gross Domestic Product (GDP).
Despite the difficulties, the automakers had a positive balance. While the performance and customization market is booming. A Strike Brasil, in the middle of the pandemic, grew 72% along with a 33% growth in number of units. For those interested in investing in this market, there are certainly opportunities, but you need to pay attention and plan.
So, keep reading to find out the main highlights of how the automotive market was in 2021!
An overview of the automotive market in 2021
According to the National Federation of Motor Vehicle Distribution (Fenabrave), the complete automotive market grew 10,57% in sales in 2021. While the result is assessed as very positive by the president of Fenabrave, José Maurício.
“We are still experiencing a global crisis in the supply of inputs and components in the industry, and new challenges have arisen for the sector, such as constant increases in interest rates, which have been impacting financing. Still, we managed to close 2021 with the 12th best result since 1957”, comments José Maurício.
Meanwhile, the The auto parts and repair market advanced strongly, growing 25,2% in revenue in 2021, totaling R$158,1 billion. This advance can be interpreted in conjunction with difficulties in financing, low inventory and economic uncertainty for families.
The segment of automotive franchise specialized in performance also advanced. At Strike Brasil, our The number of remaps carried out increased by 72% in 2021 and we increased our units by 33%, our online store grew 104% in the same period!
The main highlights of the automotive market in 2021
The automotive market in 2021 brought several unexpected events. In fits and starts, automakers and companies in the sector had to adapt quickly to overcome the difficulties.
Let's now look at the main highlights of the past year:
Production line shutdowns across the country
A lack of components, especially semiconductors, affected 14 factories in Brazil, leading to the reduction or complete stoppage of production lines for more than 40 models. Like this, the loss of production is estimated at 500 thousand vehicles.
“There is demand, the automakers raised their projections and the chip companies were unable to meet it”, he comments Fábio Sacioto, regional director of the National Union of the Automotive Components Industry (Sindipeças) in Minas Gerais and president of the Centro Industrial Empresarial de Minas Gerais (Ciemg).
Consequently, manufacturers were unable to deliver all of dealers' orders. While many factories had to negotiate collective vacations or layoffs of entire lines, which is when workers' contracts are temporarily suspended, but without dismissing employees.
While some leave, other automakers confirm investments in Brazil
The Brazilian automotive industry saw major changes. In January, the Ford announced the end of production in Brazil, after more than a century in the country. The automaker's departure led to the dismissal of 5 workers and costs of around US$4,1 billion.
Meanwhile, and with more moderate losses to the sector, Mercedes-Benz confirmed in August the sale of its deactivated factory in the interior of São Paulo.
On the other hand, there was the announcement of other companies that took on new investments in the country:
- Renault announced R$1,1 billion investment program until the first half of 2022, to renew 5 models, introduce new versions of the turbo engine and bring two models of electric cars;
- BMW announced R$500 million in investments to produce the X3 and X4 models, plus a third model, over the next 3 years;
- AVolkswagen announced an investment plan worth R$7 billion between Brazil and Argentina until 2026.
Used vehicles with a price greater than a 0 km
With a lack of supply of zero-km models, as can be seen from the previous highlights, this generated an unexpected phenomenon: pre-owned and used cars gained more value than new models!
According to KBB Brasil Price Variation Monitor, models manufactured until 2018 rose 0,92% and cars produced until 2011 became 1,46% more expensive. On the other hand, new models had prices adjusted by only 0,23%.
KBB also observed used cars being sold at prices above the 0 km models. According to the study, the pre-owned Fiat Strada 2021 model could be found up to 3,37% more expensive than its newer equivalent version.
“The rise in brand new cars also ends up pushing used cars up. Not in the same proportion, it's a fact, but it's a common situation. Today, for example, the Fipe table is not a reference. There are resellers, after all, negotiating cars above the price”, he says to Car Newspaper consultant Paulo Garbossa from ADK Automotive.
In the consultant's assessment, consumer immediacy also drives demand for used cars. Without wanting to wait in line to buy a new model, many customers opt for pre-owned ones, which, consequently, end up increasing in value.
Resilience and warming of the workshop and autocenter market
The industry's difficulties, however, were not observed among workshops and autocenters. While in the first quarter of 2021 independent workshops saw a 14,4% drop in revenue compared to the same period in 2020, in the second quarter they saw growth of 107% compared to the 2nd quarter of 2020!
Due to the economic crisis and the drop in the purchase of brand new vehicles, many chose to stay with their current car for longer than to exchange for a new one, generating an increase in demand for maintenance.
However, competition is strong and businesses need to innovate to continue growing. It is at this moment that the opportunity and importance of adding exclusive services and offers arises, such as products and services Strike Brasil.
In this way, these businesses move away from the traditional workshops and automotive center, which makes a total difference in the quality perceived by customers and in differentiation.
The prospects for the automotive market in 2022
Finally, several of the events in the automotive market in 2021 should continue to echo in 2022. In this sense, it is expected that the semiconductor crisis will last until the second half of this year.
Meanwhile, demand for pre-owned and used cars tends to grow, driven by the lack of stock and the increase in interest rates, making financing difficult. On the other hand, the repair, performance and auto parts market should continue to ride a wave of growth.
Do you want to know more about the opportunities in the market and how to take advantage of them to enter automotive entrepreneurship? Then, be sure to check out our article about opportunities in 2022 and how to take advantage of them!
