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Innovative Business Models Influence Growth Strategies in Argentina, Brazil, Chile, Colombia, Mexico, and Peru
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Latin America is going through challenging times with isolation measures and economic difficulties due to COVID-19. The global microchip shortages and the closure of regional automotive factories impacted new car sales, and stimulated the rise of their prices. It also provoked the increase of used car sales and prices in the region. In 2020, 18.5 million used cars were sold, and almost half of them (9.1 million) were between business-to-business (B2B) and business-to-consumers (B2C) operations. Each country has its own particularities, depending on factors, such as domestic economy, market informality, and used car sales legislation. The used car market in Latin America comprises mainly physical stores (dealerships and resellers) and private sellers. However, the rise of online transactional models disrupted this scenario. These digital companies are responsible for purchasing and selling cars, and do not operate as an intermediary, as eMarketplaces do. This trend has stimulated other automotive companies to develop digital transactional solutions. This research will provide a comprehensive outlook on the used car market in Latin America, and meaningful insights for automotive participants to explore this unique and competitive market.Author: Guira Barretto; Ingrid Schumann
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