The News

Autofin: Economic Environment Will Harm Distributors’ Profits

People select automobiles at a second-hand market in Shenyang, Liaoning province in this December 10, 2011 file photo. China is expected to release inflation data this week. REUTERS/Sheng Li/Files GLOBAL BUSINESS WEEK AHEAD PACKAGE - SEARCH 'BUSINESS WEEK AHEAD FEBRUARY 15' FOR ALL IMAGES

BY VIANEY PICHARDO

Grupo Autofin Director Juan Antonio Hernández said the complex domestic economic situation might slow growth and lower profits in the automobile industry in 2016.

Hernández stressed that the industry must “fight” to maintain sales levels in order to ensure that constructed vehicles reach the market.

The high interest rate, which was recently increased by 0.75 percent, will have a negative impact on demand, he said.

“Both manufacturers and distributors must work actively to ensure that prices for the consumer do not increase too drastically,” said Hernández.

“It is likely that factories and financial services companies will maintain the current rates in order to sell their products,” he added.

The stabilization of the dollar will mean that car prices will rise at a slower rate, he said.

“Brands have decided to support sales by sacrificing volume. They will try to sell fewer, but more expensive, vehicles,” he finished.