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Latin American Passenger Vehicle (PV) Market Outlook, 2020

  • Report

  • 73 Pages
  • February 2020
  • Region: Latin America
  • Frost & Sullivan
  • ID: 5004224

The Regional Market is Expected to Grow by 5.5% in 2020, Reaching 6.1 Million Units

In 2019, the Latin American economies faced several challenges, including generalized social unrest, economic crises in some countries, and political instability, all of which had a certain impact on local light vehicle (LV) markets. From 6.1 million units commercialized in 2018, the market fell by 5.0% to merely 5.8 million units in 2019, far from its historic values of over 7.0 Million units in 2013. Most countries in the region have experienced a contraction in their LV sales, the most dramatic case being Argentina, where the market fell by 43%, pushed by local recession and collapse of consumer power. The absolute regional sales volumes have been sustained by Brazilian market recovery, which in 2019 grew by 7.6%. The only other countries that grew in this term were Peru and Colombia, but only at conservative rates between 1.7% and 2.4% respectively. In the present research service, the publisher analyzes the LATAM LV market outlook for 2020. The Latin American automotive market is facing challenges in sustaining high volumes of absolute sales, while at the same time it is qualitatively transitioning into a market with new characteristics and crucial innovations.

Some crucial trends impacting this market have been discussed in the present study. These include the changing global geopolitical reconfiguration of trade alliances (in the context of the US-China Trade War) which are impacting the LATAM automotive markets, for example, the new USMCA treaty in North America, the Mercosur-European Union agreements, or the future of the Pacific Alliance. This study also discusses the growing penetration of Chinese OEMs in South Pacific LATAM countries, its challenges, and opportunities. Also, it does a deep dive into the improvement in safety, security, and emission standards in many countries, which will also impact the adoption of wider connectivity, ADAS, and sustainability features across OEM portfolio offerings. Two specific sections are included as well, dedicated to the analysis of the rising xEV market in the region (covering HEVs, PHEVs, and BEVs) and to the new mobility services markets.

Research Scope

The strict scope of this study covers passenger vehicle (PV) or light vehicle (LV) markets, which include cars, SUVs, pick-ups, and other light commercial vehicles (LCV), and it analyzes the 2018 to 2020 period. Ten LATAM countries have been put in the spotlight: Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, Puerto Rico, and Uruguay.

Key Issues Addressed

  • What is the current status of the Latin American light vehicles market? What is the forecast for 2020?
  • What key disruptive trends are impacting the regional market? What growth opportunities can be capitalized out of them?
  • How will the new regional re-configuration of trade alliances, like Mercosur or USMCA, impact the passenger vehicles market?
  • What is the status of electro-mobility and mobility services markets in LATAM?

Table of Contents

1. Executive Summary
  • 2019 Key Highlights
  • LATAM LV Market by Country - Regional Snapshot
  • LATAM LV Market - Snapshot of the Decade
  • Key LATAM Transformative Factors for 2020
  • 2020 Top Predictions

2. Research Scope and Segmentation
  • Research Scope

3. Key Latin American Automotive Sales Trends
  • LATAM LV Market by Country - Regional Snapshot
  • LATAM LV Market - Snapshot of the Decade
  • LATAM LV Market by Country - Compared
  • LATAM LV Market by Segment - Snapshot
  • LATAM LV Market by Segment - Compared Segment Penetration Rate
  • Regional Spotlight - Argentina
  • Regional Spotlight - Brazil
  • Regional Spotlight - Chile
  • Regional Spotlight - Colombia
  • Regional Spotlight - Ecuador
  • Regional Spotlight - Mexico
  • Regional Spotlight - Paraguay
  • Regional Spotlight - Peru
  • Regional Spotlight - Puerto Rico
  • Regional Spotlight - Uruguay

4. Key Trends Impacting the LATAM Automotive Market
  • Trend 1 - Rising Penetration of Chinese OEMs in LATAM
  • Trend 2 - Regional Trade Treaties on the Agenda
  • Trend 3 - Impact of New Regulations in Automotive Features
  • Trend 4 - Electric Vehicle's Market Takes Off
  • Trend 5 - Safety & ADAS Features on the Rise
  • Trend 6 - Connectivity Services
  • Trend 7 - Powertrain Diversification
  • Trend 8 - Mobility Service Business Models on the Rise

5. New Regional Trade Treaties Outlook
  • USMCA Outlook
  • Pacific Alliance Outlook
  • MERCOSUR Outlook
  • Case Study - MERCOSUR-EU Agreement

6. Electromobility Outlook
  • Factors Impacting the Latin American Electromobility Market
  • Latin American Electromobility Market Trends Analysed
  • Latin America - xEV Unit Sales Forecast by Technology
  • Consolidation of Regulatory Frameworks and Private Initiatives
  • xEV Ecosystem in Latin America

7. New Mobility Outlook
  • Ride On-demand Services in Latin America
  • Carsharing in Latin America
  • Shared Electric Scooters in Latin America
  • Bikesharing in Latin America

8. Growth Opportunities
  • Growth Opportunities in LATAM
  • Strategic Imperatives for Success and Growth

9. Key Conclusions
  • Key Conclusions and 2019 Outlook
  • Legal Disclaimer

10. Appendix
  • List of Acronyms
  • List of Exhibits