BMI's Executive Summary

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The Sector At A Glance

Key Insights On The Automotive Sector Of Chile

Chile's automotive industry has remained relatively unchanged in the second half of 2006. As such, BMI has maintained its forecasts for the key areas of sales and production in the Chile Automotives for Q406. Following a trend identified in earlier reports, imports continue to weigh heavily in the sector's outlook, rising by 34.7% to 18,958 units in October. Similarly, the Chilean automotive trade association Cavem notes that used-car sales have risen by 8.4%, with around 300,000 units sold in the year to July. BMI is forecasting sales of 195,000 units for the year, while we expect the already weak productive-arm to continue to slide, falling to around 4,572 units. Our sales forecast is in line with Cavem's projections of between 194,000 and 198,000 units sold in 2006. Automobile Industry Association ANAC, meanwhile, is predicting sales of 200,000 units.

General Motors (GM) continues to lead the Chilean market, a position it has held for 23 consecutive years. GM's Corsa had been knocked off the top spot earlier this year by the Toyota Yaris. In line with industry data, in the period January - July Toyota sold some 9,066 units of the Yaris, while GM sold 5,224 units of its Corsa under the Chevrolet banner. Nissan moved into third place, selling 3,986 units of its V16 model. The Hyundai Tucson was the best-selling sports utility vehicle (SUV) for the period, with 1,651 units sold, followed by the Terracan (1,570) the Ford EcoSport (1,417) and the Suzuki Grand Nomade (1,413). GM re-stamped its authority on the market during the third quarter, however. The company's sales grew 11% during the period to 24,562 units, against the same period a year before. The upturn was attributed to the launch of eight new models during September, which were reportedly more in line with consumer tastes. As a result, GM's market share climbed to 16.2%.

Chile continues to rank second in BMI's Business Environment Ranking on a composite score of 40. The position is largely owing to the absence of any significant production industry, leading us to predict a drop in output for the remainder of the forecast period up to 2010. In fact, we expect total output to continue to decline in 2006, falling to 4,572 units.

Contents

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Chapter 1 – SWOT Analysis

Chile Auto Industry SWOT

Chile Economic SWOT

Chile Business Environment SWOT

Chapter 2 – Latin America Regional Overview

Table: Latin America Autos Production – Historical Data & Forecasts (CBUs unless otherwise stated)

Table: Latin America Autos Sales – Historical Data & Forecasts (CBUs unless otherwise stated)

Chapter 3 – Business Environment Rankings

Table: Latin America Business Environment Ranking

Economics – Long-term Risk

Politics – Long-term Risk

CBU Output Growth

Vehicle Ownership/Penetration Potential

Regulation

Competitive Environment

Chapter 4 – Industry Forecast Scenario

Production and Sales

Table: Chile Autos Sector – Historical Data & Forecasts (CBUs unless otherwise stated)

Trade

Table: Chile Autos Sector – Historical Data & Forecasts (CBUs unless otherwise stated)

Economic Contribution

Table: Chile Autos Sector – Historical Data & Forecasts (CBUs unless otherwise stated)

Chapter 5 – Macroeconomic Forecast Scenario

Table: Chile – Economic Activity

Country Snapshot: Chile Demographic Data

Section 1: Population:

Table: Demographic Indicators (2005)

Table: Rural/Urban Breakdown

Section 2: Education & Healthcare

Table: Education

Table: Healthcare: Vital Statistics

Table: Healthcare: Expenditure

Section 3: Labour Market And Spending Power

Table: Employment Indicators

Table: Consumption And Stratification

Table: Wages Per Year

LATIN AMERICA: Automotive Focus Report On Premium Cars

Regional Overview

Table 1: Competitive landscape: Regional Comparison

Table: Prospects For Growth In Latin America’s Premium Car Markets

Market Size & Opportunities for Growth

Customer Profile

Key Players

Table: Chile - Top 10 best-selling passenger cars in Chile, 2005

Table: Chile - Top 10 best-selling SUVs in Chile, 2005

SWOT of Chilean premium car market

Chapter 6 – Special Focus: Commercial Vehicles

Light Trucks

Table: Chile LCV Production 2005

Table: Chile’s Top 10 Best Selling SUVs 2005

Table: Chile’s Top 10 Light Commercial Vehicles 2005

Heavy Trucks

Table: Chile Truck (>6 tonne) Sales, 2000-2005

Table: Chile Imports by Country Of Source, 2005

Forecast

Table: Chile Commercial Vehicle Sales Forecasts

Table: Chile Commercial Vehicle Production Forecasts

Chapter 7 – Competitive Landscape

Industry Developments

Passenger Car Segment

Table: Key Players: Chile Automotive Sector – Passenger Segment 2005

Chapter 8 – Company Monitor

GM Regional Overview

Table: General Motors Regional Car Sales

Table: General Motors Regional Production

General Motors Regional SWOT

Company Profiles

General Motors

PSA Peugeot Citroën

BMI Forecast Modelling

Automobile Industry

Sources

Appendix: Regional Demographic Data

Table: Wages (ave. per annum), US$

Table: Population

Table: Household Spending Per Capita, US$

Table: Private Consumption Per Capita, US$ PPP

Table: Market Size, GDP, US$bn

Competitive Landscape for Latin America Automotives: Sample of  
Companies Ranked

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Rankings and Competitive Landscapes by production and sales; market share and change on previous year; number of employees, ownership structure and year established. Also includes analysis of company expansion, export and investment strategies.

Network of Latin American Automotive Sources

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BMI's Latin American Automotives Reports are based on an extensive network of multilateral organisations, government departments, automotive industry associations, chambers of commerce and company reports. Information sources include:

BMI's Affiliates and Partners in Latin America

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