Anuário Brasileiro do Setor de Locação de Veículos | 2021

26 Anuário Brasileiro do Setor de Locação de Veículos Brazilian Vehicle Rental Sector Yearbook 2021 Year begins with strong demand for vehicles I n addition to the pandemic, the price increases for cars and light commercial vehicles were recurring themes in the vehicle leasing and rental sector in Brazil, especially in the second half of last year. Now, in 2021, with automakers, we are at a junction of high demand and low production. Among the cost pressures for automakers is the increase in the price of steel and inputs in general, especially the costs of imported items (which account for an average 30% of the components in a car). To make matters worse, before the end of the year the ICMS tax on vehicles in the State of São Paulo was increased. Dan Ioschpe, president of Sindipeças, acknowledges that the sector has been badly affected, with a significant slowdown in the second quarter of 2020. But he points to recovery in Brazil, and the rest of theworld, whichwas seen last year, as economic activities recovered. “Demand for vehicles was driven in certain segments by the consumer’s desire to opt for individual transportation, a trend that was not prevalent until then,” he says. Regarding the influence of the dollar on costs, Ioschpe says volatility is significant. However, in his view, “It is a clearly outside the control of industry or sectors like ours.” He warns of the need to seek a balance between imports and exports, to minimize or even neutralize these effects. In addition to prices, the president of Sindipeças is categorical about the promotion of the sector: “What has always counted and will remain on the agenda for companies is research, development, and innovation, along with improving competitiveness and greater participation in the global market,” he says. Sindipeças centralizes actions in Inova Sindipeças, structured on five pillars: partnerships with startups; partnerships with academia; culture and innovation management; industry 4.0, and product innovation. Usage index - Victor Mizusaki, a capital market analyst in the transport segment in general at Bradesco BBI, says that while new car prices increased, given the lack of parts and various difficulties in the industry in recovering production, the vehicle leasing and rental sector began to pick up, despite the cost of its main inputs. “Without enough vehicles available, leasing and rental companies had to increase prices,” he says. “However, the dynamics of the car leasing and rental industry passed the test, with the usage index reaching new heights in the third and fourth quarters of 2020.” In reference to the global financial crisis of 2008, Victor Mizusaki recalls that the rental companies’ business model - which demands a lot of capital spread fear at the time. “But the industry got through that challenge, because the liquidity for cars is very high.” Mizusaki dismisses the risk of rising default, given the current outlook on rental activity. The analyst’s reasoning is based on the continuity ensured in management and fleet outsourcing contracts. Subscription rent, in turn, is also facing a positive outlook, buoyed by new consumers who are rejecting car ownership. © macrovector | Freepik ® TARIFAS | RATES