The Venezuelan automobile fleet, in reverse gear

Traveling to the past is possible in Venezuelawhere the vehicle fleet accumulates an average of 22 years old, according to the sector, which attributes this aging to the fall in purchasing power and the lack of bank financing for the acquisition of new ones. vehicleswhich also makes it difficult to do periodic maintenance and buy spare parts.

The age of most vehicles is seen daily on the streets, where broken down units are frequently observed, even several on the same road, which causes traffic congestion.

The president of the Chamber of Auto Parts Manufacturers (Favenpa), Omar Bautista, told EFE that the aging of the automobile fleet, “about 4.05 million vehicles”is mainly due to the fact that in recent years they have entered the country “very small quantities.”

He indicated that, “historically”the vehicle fleet was supplied with around 100,000 new vehicles annually, but in the last seven years, this level “has dropped considerably”at an average of 5,000 vehicles per year.

“The vehicle fleet requires replacement. Even more than 70% “of that vehicle fleet is more than 15 years old”said Bautista, who stated that only the 10% They have been in circulation for less than 10 years.

Without conditions to circulate

It is also common to see private cars or public transport units that circulate without the conditions to do so, deteriorated and with failures, such as a strong expulsion of smoke from the exhaust pipe, with consequences for the environment.

The Land Traffic Law establishes that “every owner of a motor vehicle is subject” to a series of obligations, including “maintain the vehicle in perfect conditions of safety, operation and hygiene”in addition to “submit the vehicle to inspection.”

The “land traffic administrative authorities will prevent the circulation of those vehicles whose owners have not complied with their obligations,” states the law.

However, “that is not being fulfilled”, assured Bautista, who pointed out that units circulate on the streets that “they are not in good condition”even “Many of them do not have lights and travel on highways at night”which means a “serious danger not only for the passengers, for the driver, but for the vehicles that circulate around them.”

Bautista explained that, due to the loss of purchasing power, vehicle owners are “leaving the purchase of spare parts” and “maintenance for later”which has affected the auto parts industry, with the 73.2% of its idle installed capacity, according to the Confederation of Industrialists (Conindustria).

This year, manufacturers have registered “a significant decline” by “fall in consumption” and the “importation of spare parts without paying taxes”which “compete unfairly” with national production, a problem that businessmen expect “be corrected” next year.

Sales

The president of Favenpa pointed out that, on the other hand, in the sale of vehicles there has been a “significant increase” this year, which expects to close with a total sold of about 7,000, although this represents only the 7% of the historical level.

According to data provided to EFE by the Automotive Chamber of Venezuela (Cavenez), 5,666 vehicles were sold between January and October, an increase of 97.6% compared to the same period last year, when there were 2,867 units.

Cavenez warns that, currently, “there is not enough market” in the country for “make the investments” in assembly of private vehicles, which explains that the one registered between January and October, of 47 assembled units – a 24% less compared to the 62 in the same period of 2022 -, be it only trucks.

Bautista explained that consumers who, despite the crisis, “They have some purchasing power, and companies that buy vehicles for their executives are beginning to change” cars, which has increased sales, which are expected to continue in 2024, although without “recovering the previous amount” because “there is no bank financing policy” for this.

In this sense, he pointed out that between the 70 and the 80% of vehicle sales were through financing, but now “that does not exist”.

A Japanese company presented last week a new 2024 model, with a price of US$35,000, an amount that most of the country does not have access to, and which exceeds the price of the vehicle in Europe by almost US$10,000.

According to the Ecoanalytical firm, only the fifteen% of Venezuelans earn more than US$300 a month.