Peru Autos Report 2016 - Business Monitor International - Industry Reports

Peru Autos Report 2016

Peru Autos Report 2016 - Business Monitor International - Industry Reports
Peru Autos Report 2016
Published Jan 23, 2016
33 pages — Published Jan 23, 2016
Price US$ 1,295.00  |  Buy this Report Now

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Abstract:

Over the past year, sustained currency weakness, rising inflation and a slowdown in the broader economy have continued to weigh on consumer sentiment and retail spending. ...The slashing of corporate and personal income tax rates should also give Peruvian consumers more disposable income to spend on big- ticket items such as a new car. Moreover, households will benefit from expanding employment opportunities in non-extractive industries, particularly services, as the Peruvian economy diversifies Against this encouraging backdrop, we believe that private consumption - a key indicator of the potential demand for new vehicles in Peru - will expand by -.- in ----, up from -.- in ----. Turning to the outlook for commercial vehicle (CV) sales, we believe that the continuation of government stimulus measures will bolster both consumption and investment, which is likely to free up funds for fleet renewal, particularly of light commercial vehicles (LCVs). ...Moreover, rising inflation has caused the BCRP to commence a tightening cycle in monetary policy.

...As there is no significant autos production in Peru, vehicle demand is entirely met by imports. Moving into ----, ongoing weakness in the Peruvian sol will increase the price of imports in local currency terms and may provide some downside risk to our sales forecasts. ...This is partly owing to the restrictive rules of origin requirements written into these bilateral agreements. These requirements state that in order for Peruvian and Chilean products to qualify for duty-free access to an export market like the US, a specified portion of their value must have been sourced either domestically or from the export partner but not from any third-party country. Owing to their undeveloped domestic production base for components and inputs, this has meant that component suppliers in Chile and Peru are limited in their ability to source cheap inputs from anywhere other than their export partners, most often the ...These requirements state that in order for Peruvian and Chilean products to qualify for duty-free access to an export market like the US, a specified portion of their value must have been sourced either domestically or from the export partner but not from any third-party country. Owing to their undeveloped domestic production base for components and inputs, this has meant that component suppliers in Chile and Peru are limited in their ability to source cheap inputs from anywhere other than their export partners, most often the

...After another challenging year in ----, when we expect new vehicle sales to have fallen by nearly - , BMI believes the stage may be set for a slight recovery in Peruvian new vehicle sales in ----. We are currently targeting -.- growth for the Peruvian autos sector in ----, with commercial vehicles set to outperform passenger cars. The slashing of corporate and personal income tax rates will very likely give Peruvian consumers more disposable income to spend on big-ticket items such as a new car. Downside risks to our ---- sales forecasts include the fact that we believe that the Peruvian sol will continue its depreciation in the coming quarters, increasing the cost of imported new cars to Peruvians. Beyond ----, we maintain a measured outlook towards Peruvian new vehicle sales over the medium term, targeting further growth towards the ---,--- units per annum mark. ...

  
Source:
Document ID
1749-0073
Country
Industry
Format:
PDF Adobe Acrobat
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Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

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MLA:
Business Monitor International - Industry Reports. "Peru Autos Report 2016" Jan 23, 2016. Alacra Store. Dec 11, 2016. <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/Peru-Autos-Report-2016-2026-718>
  
APA:
Business Monitor International - Industry Reports. (2016). Peru Autos Report 2016 Jan 23, 2016. New York, NY: Alacra Store. Retrieved Dec 11, 2016 from <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/Peru-Autos-Report-2016-2026-718>
  
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