The lack of spare parts and the invasion of Chinese cars have created a unique scenario in the Latin American country
Venezuela is the sixth-largest country in South America. Its large oil reserves have made this nation a favorable place for automobile production, which is corroborated by the very low price of gasoline there.
Today the fuel is sold for US$ 0.01, equivalent to 5 cents of Real in direct conversion. In 2007 Venezuela produced 172 thousand cars, but today it no longer produces new vehicles, it only assembles some CKD kits.
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Venezuela’s car market is in a peculiar phase, as used cars are so valued that they even have prices as new ones. And the public has no interest in a brand new vehicle.
Currently the Venezuelan market is receiving several Chinese brands, such as MG, Jac, Changan, Dongfeng and Foton. They came due to the political relations between these countries, as well as the Iranian brands Saipa and ICKO.
Despite this, traditional brands are still present. Fiat, Volkswagen, Honda and Toyota sell cars produced in Brazil or imported from other places, Ford is also present. General Motors, which was the first brand to produce in Venezuela, left there in 2017.
This offer of new cars is similar to that of other Latin American countries, but there are several particularities in the behavior of the public. Despite receiving new cars, Venezuela has problems in the supply of spare parts.
According to a report by the German broadcaster Deutsche Welle (DW), the Venezuelan buyer chooses the car based on ease of maintenance and availability of parts. This makes the most reliable used cars, especially those from Toyota, cost the same or more expensive than a new car.
Toyota is a darling in Venezuela. It produced the Land Cruiser there for many years, even giving it exclusive names: the rustic 70 series jeep was called Macho, while the modern 200 series was named Roraima.
Toyota’s success is so great that then-President Hugo Chávez threatened to expropriate the brand’s operations in 2009. At the time, the Land Cruiser “Macho” was produced locally.
New cars are full of electronics and, in the case of the Chinese, use little-known engines. With the shortage of parts, the Venezuelan ends up thinking it is wiser to carry a 10-year-old Toyota on his back.
The residents of this country need to be creative to keep them running, almost like what is done in Cuba. An Associated Press report showed this reality, using as an example a Honda Civic using PVC pipe in the intake and wood to hold the battery in place.
A mechanic specializing in brakes commented to the report that many customers end up asking to repair only the front ones. Doing the service on the butts does not fit in the budget.
The car situation in Venezuela has been declining for the past 10 years. Not even the release of the import of cars up to 5 years old was able to renew the fleet, which has an average age of 22 years.
