“In 2023, we will have a shared electric car”, predicts an executive in the sector

Rodnei Bernardino has worked in the financial sector for 23 years. What few people know is that one of the statistician’s first jobs was at Pirelli. Perhaps this helps explain his passion for mobility solutions, which he talks about with enthusiasm.

Since 2013 in charge of the vehicle business area at Itaú Unibanco, the executive celebrates the best result in the bank’s history in the release of credit for the purchase of vehicles. and spoke to Estadão about the Itaú bike project, which gave rise to the Shared Electric Vehicle (VEC), and the prospects for the sector in 2022.

What assessment do you make of the business in 2021?

Last year was very special for us and the mobility area. As well as for the vehicle financing sector. We invested heavily in vehicle operations, in the VEC, in communication and in the Itaú tag, among other products and services. From January to September, we placed R$ 25 billion in credits on the market. The increase was 67% compared to the same period in 2020. In the third quarter, we released R$10 billion in credits for individuals and companies – that is, there was an increase of 44%. It was the highest level in the bank’s historical series. The market grew much less.

Thus, we gained market share. This shows how much we believe in the automotive segment and in improving the offer of transport and mobility. Our operation aims to enable access to mobility solutions.

Itaú Unibanco has a very clear commitment to society to develop urban mobility. Our history of acting started 12 years ago with the bike and has been growing. The WTW (streaming platform) and Cubo Smart Mobility (startup accelerator) also show our belief in this cause, which is an important pillar of sustainability. We will continue to be a relevant player in the segment.

The rise in the supply of credit shows that people want to buy cars…

It is very interesting to see people looking for new forms of mobility. There are Uber, Cabify and 99, in addition to the taxi and the bicycle. There is a strong movement in long and short term rentals. Automakers, rental companies and dealerships are investing in the segment.

In large cities, such as São Paulo, Curitiba and Belo Horizonte, the car-per-inhabitant ratio is good. But, in Brazil, there is a huge space to grow. And even in populous cities, the fleet is old. It is between seven and eight years old in the case of light vehicles and varies from 15 to 20 years in the case of heavy vehicles. Of the 12 million vehicles sold in the country per year, only 2 million are new. We study consumer behavior a lot, and it is multimodal. Many people have a car and also use Uber and bike, for example.

Because of the pandemic, those who could escape public transport and migrated to individual. Even though there are more bicycles, shared and rental vehicles, we do not see signs of cannibalization of the private car market. And there are no signs of a decline in the coming years.

When we project for 20, 30 years ahead, there will still be a lot of space. Because of the potential, two large Chinese companies (BYD and GWM), for example, are entering the Brazilian market, which is the seventh largest in the world. The used car is the third largest. Those who want to travel or take a weekend trip can use their own car. To work or go to a business lunch, there are solutions such as the VEC (Shared Electric Vehicle) and the bike, for example. And the use of these multiple modal options is a very strong characteristic of the Brazilian consumer.

How is the shared electric vehicle?

I am proud to do this project. We’re learning a lot. Let’s wait a little longer to have the experience oiled and go out on the street. In other words, first we go to companies and then to the general public. The project was delayed because we realized that there are still issues to resolve. For example, how to open and close the car when you don’t have your cell phone. Obviously, the service is to be used by anyone who wants to go from point “A” to “B”. However, the user may want to stop halfway.

The VEC will also encourage the use of the electric vehicle, which is still very expensive. In other words, it will allow more people to use this type of car, which is more sustainable, comfortable, safe and quiet. An interesting aspect is that the project attracted many more companies than we imagined. Automakers want to expose their vehicles. There are rental companies and even supermarkets and retail companies. We are talking with parking networks, because we can install the stations in these places, which are safe and will allow the customer to have a good experience.

When will the vehicle be available to the public?

This year, we’re going to focus on companies. In fact, we did not imagine that it would attract this market. We started inside the bank, with cars for the employees. Many companies came to us to offer it to their employees as well. So, we prefer to start in that segment. From the beginning of the second semester you will start to see a lot of VEC on the streets. We believe that in 2023 the market will be more mature and we will be able to launch it to the public.

What are the goals for 2022 and what will you do to achieve them?

2022 will be a challenging year. The bank released a forecast of a drop of -0.5% of GDP. So, we believe that vehicle financing should go sideways and grow, at most, 1.5%. There should be no increase in the wage bill, and unemployment is high, as is inflation. In addition, interest rates have risen. Delinquency usually grows at the beginning of the year, but should not cause any crisis. The worrying fact is the great indebtedness of the population.

We will continue to act strongly in vehicle financing and we want to gain participation. But let’s keep our feet on the ground. There may be a hiccup here and there, but the sector should not suffer from any kind of systemic problem. In 2021, more than R$ 200 billion were released for vehicle financing in the country. There is a lot of credit available.