The Chilean consumer is increasingly willing to bet on a vehicle of this origin. A trend that occurs not only among new units, but also used ones. Evidenced by the resale ranking, where there are already several Chinese who stand out.
Not only the sale of new cars has fallen sharply this year in the country, but also the registrations of used vehicles They have suffered from the ravages of today’s economy. According to the Chilean Automotive Chamber of Commerce (Cavem), 137,111 units were sold between January and May, which represents a decrease of 27.7%.
“Used vehicle sales rose sharply in 2020 and 2021, then started to decline back to normal levels due to new car supply regulations,” he explains. Martin Bresciani, president of Cavem.
A discouraging scenario for this market which, on the other hand, could represent an opportunity for the consumer, since, consequently, used car prices have been falling in recent months approaching those we observed before 2020, where they remained stable.
According to Chileautos, average used car prices overall have fallen 16% over the past nine months. Between them, Of particular note is what is happening with Chinese car values, which show a smaller drop of 14%.
“Although there are only two points of difference in the price drop of Chinese-origin cars compared to the general brand, it is not the first time that we have seen this trend, because in December 2022 , we noticed that if the average price drop was 11%, that of cars of this origin was 8%”, specifies Caroline Klee, regional marketing manager of Chileautos-Carsales.
“Probably, it’s because users have gradually gained confidence in these brands, given their support and improvements in design, technology and safety,” he explains.
De Cavem they approve of this theory and in the voice of Bresciani they complete: “the worn-out of Chinese origin have grown in direct relation to the importance they have taken among the new, where they have increased enormously. Likewise, there are less and less prejudices with the Chinese car, because This resistance was based on the after-sales problems encountered by certain brands when they arrived in Chile. Today, all this is a thing of the past, since brands of this origin have international quality standards equivalent to all others”.
By segments
Even if every day there is more Chinese companies Present in the country, in used vehicles, they still do not have a greater role because they are very recent brands. Currently, according to Cavem, they represent 7% of transactions.
Likewise, and according to the monthly publications of Chileautos, the brands of Chinese origin show greater growth than the rest of the brands. To which are added that show an upward trend in the SUV segment, where they increased by nine points between May 2022 and May 2023 . In brands of other origins, this increase is only 5 points.
Thus, and according to the records of Chileautos, the offer of vehicles of Chinese origin has notoriously concentrated on SUVs over the last year, falling from 44% to a 53% of the total supply of cars of this origin.
In this regard, Bresciani points out that: “in the medium term, the sale of used Chinese cars will have greater relevance in SUVs and trucks because that is where they play a leading role today in the new units”.
In the Cavem sales ranking in figures (between January and May 2023), two Chinese brands are currently in the top 10 bestsellers. MG is in ninth position with 5,201 units sold and a market share of 3.8%, followed by Chery with 5,151 cars and also a market share of 3.8%.
The latter is the leader in the SUV segment, with almost all of its sales (5,146). In this regard, and according to Chileautos, the Chery Tiggo 2 Pro is the model of its type that has lost its value the most in a year compared to Changan UNI-T, which recorded the smallest decrease.
Now referring to the vans another of the most requested segments in Chile, Maxus is second in the classification used, with 4,129 units, only behind Mitsubishi (5,072), which clearly shows the importance of origin in this segment.
“Maxus is a brand to watch as it takes center stage on occasion and has been the The T60 was the second best-selling truck among new models in 2022 concludes Bresciani.
This is how the Chinese not only take over the new market, but also little by little they are beginning to stand out in the second-hand market.
Source: Latercera
I am David Jack and I have been working in the news industry for over 10 years. As an experienced journalist, I specialize in covering sports news with a focus on golf. My articles have been published by some of the most respected publications in the world including The New York Times and Sports Illustrated.
