Damien Kantor
06/01/2020 - 15:03
- Clarín.com
- Economy
The Government is finalizing details to launch soft loans for the purchase of motorcycles and bicycles. "They are plans for the purchase of domestically produced motorcycles with a cap of up to $ 150,000 in 36 fixed installments. But they are still analyzing the details before formalizing the announcement," said an industry source. Those "details" have to do with the rate (it would be less than 24% per year ) and the mechanism to buy and withdraw the units from the dealers.
The project is in tune with two objectives considered essential: on the one hand, to promote the use of alternative means for buses, subways and trains due to the coronavirus, and on the other, to reactivate sales and assembly of motorcycles, a segment that has been hit hard by the crisis and quarantine. Almost 88,000 motorcycles were dispatched between January and May , which represents a contraction of 46.2% compared to the same period last year, says the latest report by ACARA-Motos (the dealers' chamber). The same report anticipates that " the sector hopes with a financing and stimulus plan that would be made official in the coming days ", without giving further clarification.
ACARA refused to give more details about the project. However, it emerged that a draft is circulating among the banks to see how the financing and delivery of the units is implemented, taking into account the restrictions of the dealers to operate and the people to circulate. The initiative came from the Ministry of Transport (Mario Meoni), which was later joined by Productive Development , led by Matías Kulfas, more precisely the Secretary of Industry, Ariel Schale. The objective is that the financing of the purchase be at a lower rate than the credits granted to companies in crisis and the payment of wages, that is, 24%.
The number of patented units during May was 16,187, motor vehicles, 38.7% less than in the same month last year. Sales throughout the year were already in a tailspin: January (-37%), February (-35.6%) and March (-38.8%). April closed with a drop of 85.5%. Between the lock of compulsory isolation, economic paralysis, lack of credit and the jump in the dollar, just 4,335 units were patented and it was the worst month in history . Registration was so low, they explain, because almost all dealerships were closed. Mayo raised a little, in parallel with the greater opening of stores, especially in the interior of the country. Last year, the industry closed with 320,000 patented units, far from the 688,000 registered in 2017 .
Carlos Movio, from ACARA, stated that the trend could be modified since "we were working together with the factories on a stimulus plan ." In this context, "motor vehicles can be the most efficient alternative to public passenger service, which is why we seek to promote the use of two wheels, so that people can get to work more easily. We are looking forward to these measures can strengthen demand and that this contributes to the year having a noticeable improvement, "said the manager in the patenting report.
In the sector they estimate that in Argentina there are 7 million motorcycles in use , most of them with low cylinder capacity. Financing is a crucial element for the business and soft loans point in that direction. To get an idea, the low displacement units (between 100cc and 125CC) represent between 50 and 55% of the total market and their prices range between $ 40,000 and $ 120,000 , so that no model exceeds the ceiling provided in the plan. of the government. A step up (125cc and 250cc) are the models that concentrate another 35% and that are worth between $ 60,000 and $ 300,000 . "The cap is for the amount of $ 150,000 and does not involve cylinder capacity," they clarified.
They are values above the majority of the bicycles that are commercialized in the country. Unlike motorcycles, it is a much more fragmented market and the vast majority are imported units. However, there were some players who recently ventured, such as the Newsan group. The fuegian company launched in the country various lines of electric and traditional bicycles, and skateboards, which it offers for its Philco brand.
