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COMMERCIAL MOTOR VEHICLES IN ARGENTINA.

31st March 1925, Page 12
31st March 1925
Page 12
Page 12, 31st March 1925 — COMMERCIAL MOTOR VEHICLES IN ARGENTINA.
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Which of the following most accurately describes the problem?

A Steadily Increasing Demand. By a Special Correspondent.

ARGENTINA is, far and away, the most important market in South America for the sale of automobiles of all descriptions. The number of motor vehicles of all kinds on the register at the present time is, in round figures, one hundred thousand. The percentage of this number imported from England is infinitesimal, the vast majority having been supplied by the United States, which has established—for the time being— a virtual monopoly. There does not appear to be any sign of diminution in the local demand for both passenger and freight cars. According to the most recent available statistics—covering the first half of 1924— imports. were well above the 1923 average, the figures being 17,864 passenger cars, 333 trucks, and 107 motorcycles, as compared with 30,311 passenger cars, 532 trucks and 355 motorcycles during the entire year 1923. Latest advices report satisfactory progress since the issue of these figures and good prospects of greatly increased sales during the present year.

The dominant position of the United States in this market is due to a number of factors, in addition to the obvious one of price. It is generally agreed by local observers that the United States manufacturer has, up to the present, made, a more careful study of local conditions and requirements than has his European prototype. His local representative has invariably been highly efficient and has been provided with models for demonstration purposes and a thorough repair and spare-part service. Attention has been paid to the local penchant for bright colours and a generous display of nickel surface. Furthermore, every advantage that publicity can offer has been utilized to the fullest extent. In a recent number of the A.C.A. (the official organ of the Automovil Club Argentino) there did not appear a single advertisement of a British car ; at the seventh annual motor show (held in Beunos Aires) there was not a single British motor vehicle to be seen. It is obvious that if British manufacturers are to obtain an increased share of this year's business—although it be only a limited " quality " business—some attention will have to be paid to points of this nature.

Openings for commercial motor vehicles are many and various and are rapidly increasing. In addition to the present and potential demands of the local omnibus companies (referred to at greater length in a previous article), the use of lorries is becoming more widespread, whilst motor vans for commercial delivery are a recognized part of the organization of the principal stores and business houses. Many estancieros are recognizing the economic advantages of the motor truck over the heavy, slow and unwieldy horse-drawn cart., and a definite market may be expected in this direction.

The demand for motor tractors and other forms of agricultural machinery is constant. In the south of the Republic there are openings for trucks with a capacity of one to two tons for the conveyance of wool. Other factors likely to increase the demand for commercial motor vehicles in general are the proposed measures of road construction and the further development of the country's cotton industry. There is a very considerable business in pneumatic tyres, which shows every sign of increasing still further. Competition, however, is very severe and is between American, German, English and Fernch manufacturers. Great Britain does only 11

per cent. of this trade. There is an increased demand for solid tyres following upon the more Boa general use of commercial vehicles. The only serious competition in passenger cars being experienced by the United States is from French makers, who are said to be making satisfactory progress. The Citroen and _Renault cars are achieving popularity and look like establishing themselves. A feature of the Buenos Aires taxicab service is the large percentage of commodious luxury " cars plying for hire ; in that city there are no regulations such as exist in London regarding the measurements, etc., of vehicles plying for hire, with the result that magnificent cars of every description may be seen on the ranks.

Generally speaking, so far as private vehicles are concerned, the United States produces a car of good finish that will last about five years and can be gold at a cheap price. The British car will last twice as long, but is considerably more expensive. The majority of local buyers prefer to sell their cars every five years or so for what they will fetch, and they buy new ones of improved design. British manufacturers contemplating entry to the Argentine Market should make a very thorough preliminary investigation of its needs, of the nature and extent of foreign 'competition in their own particular sphere, together with prices quoted and any credit facilities that may be offered. They should be prepared to establish, or provide for the establishment of, an efficient repair depot, and they must see that their branch or agent is equipped with a complete stock of spare parts. If they are unable to compete upon a basis of price, and decide to carry on a more restricted business upon a basis of quality, they must be prepared to embark upon a reasonable advertising programme. It is of little use marketing a superior vehicle, with low fuel consumption and other advantages, unless the Argentine buyer is made aware of the ultimate economy of buying the higher-priced vehicle.

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