|Forecast Playing Out|
|Peru Monthly Vehicle Sales, CBUs|
Vehicle sales in Peru have increased 27.8% year-on-year (y-o-y) in the first 10 months of 2012, to 155,567 units. BMI forecasts vehicle sales to increase 32.6% overall in 2012.
We believe that the key factors supporting this strong sales growth are the continuation of strong private consumption growth, healthy per capita economic growth, and the greater availability of credit, through the increased affordability and provision of loans to many Peruvians ( see our online service, September 19, 'More Moderate Banking Sector Growth Ahead'). This view is continuing to play out, and has partly informed our bullish outlook for vehicle sales.
Indeed, we remain bullish about Peru's automotive sector, and believe that it is showing signs of becoming one of the most promising auto growth markets in Latin America. Peru's business environment has undergone remarkable progress in recent years, with the country's legal framework increasingly capable of processing the growing outside interest in the economy.