News Americas, NEW YORK, NY, Mon. Nov. 14, 2022: The South American truck market has been experiencing a growth trend in recent years. You can attribute the upsurge in the truck market to the increase in demand for raw materials. Trucks are mostly used to transport large commodities and bulky consignments, thus increasing their popularity in the South American market.
One of the aspects that you should know when considering the South American truck market is that there are many types and brands. You’ll have to consider different factors when determining the best truck in the market for personal or business purposes. Other factors, such as currency devaluation, affect the truck market. That said, here are five insights into the South American truck market:
South America is said to be one of the fastest growing and emerging markets for medium and heavy trucks, with a gradually increasing market value. Brazil, one of the countries in South America, is estimated to have a market revenue of about USD$0.6 billion from the medium and heavy truck industry.
- Growing Truck Market
In addition, pickup trucks have been included in the market demand. There’s a significant, gradual growth in the pickup truck market because of the increase in demand. Pickup trucks are popular because they can carry cargo that’s too light for a medium- or heavy-duty truck and too much for an SUV vehicle. Another advantage of the pickup truck is that it’s versatile and can be used for personal and business errands.
- Availability Of Parts
There’s no doubt that the availability of parts plays a crucial role in the truck market. A shortage of components in a market causes a ripple effect, resulting in increased wait times for repairs and maintenance of trucks. Some reputable brands, such as Cummins Factory Engine, have established themselves as truck parts suppliers in the South American markets. Thus, it’d be best to consider the availability and cost of spare parts for trucks when studying market trends.
Interruptions in the economy have severely affected spare parts production, affecting the truck market. In 2020, most manufacturing plants and industries were shut down, which resulted in hiccups in the supply chain and the market. While the demand for products remained high, trucks were getting grounded because of the unavailability of spare parts. Moreover, the production of trucks was also slowed because of insufficient parts and basic components, such as semiconductors.
- Currency Value
If you’re an economy enthusiast, you might be familiar with the concept of currency value in the economy. Ideally, when the economy is stable, a country’s currency value is usually in a good place for foreign markets. However, in South America, currency devaluation has seen some sectors flourish.
For example, in 2021, the Brazilian currency had a low market value compared to the United States dollar (USD), leading to increased export investments, especially in agribusiness. As a ripple effect, the truck market grew because trucks were the primary method of transportation for agricultural products and goods.
- Legal Regulations
Climate change has been a hot topic that has led to mitigation measures that include reducing carbon emissions, especially in trucks. The Euro 6 emissions standards, which go into effect in January 2023, are one regulation that is likely to have a significant impact on the truck market. The emissions standards aim to reduce truck emissions by manufacturing environmentally conscious vehicles.
In preparation, most truck manufacturers have been making trucks that adhere to the standards and have better fuel efficiency. In addition, the manufacturers are also conscious of making trucks that have more safety features.
In light of the new emission standards, manufacturers are also considering other fuel alternatives, such as natural gas and electricity, to replace fossil fuels, the main contributor to CO2 pollution. Therefore, legal regulations have a significant impact on trucking market trends.
- Social And Political Policies
Social and political policies can improve or devastate South America’s truck market. The truck market in South America is vulnerable because of instabilities caused by social and political policies, which often cause disruptions in investments. For example, in Venezuela, the automotive market has been slow because of a disturbance in economic growth. The truck market can only flourish in a struggling economy, especially if the social and political policies are conducive.
The South American truck market has bounced back in recent years because of the increased demand for products and goods. More investors are getting into the South American market, setting it up for growth and development. In addition, the market has experienced steady growth in all the main markets in the region. The truck market’s growth can also be attributed to advancements in the economic index, which boosts consumer confidence.
