Saturday, August 9, 2014

Brazil: Auto Production Sluggish in 2014, Exports to Decline by 29%

According to The Latin American Tribune, Brazilian auto production fell to 252,600 vehicles in July, down 20.5% from the same month of 2013, the Anfavea auto industry association said Wednesday (August 6).

Output for the first seven months of the year came in at 1.82 million vehicles, the lowest for that period since 2009 and a 17.4% decline relative to January-July 2013.

But July production was up 17% from the previous month in what Anfavea president Luiz Moan Yabiku said was the first sign of a second-half recovery for Brazil’s auto industry, whose output for the year’s first six months was 16.8% lower than the same period of 2013.

COMMENT: Vehicle sales in July fell 13.9% compared to the same month of last year and auto exports plunged 36.7% to 34,200 units.

The sector employed 150,295 workers in July, down 4.2% from the same month of 2013.

Anfavea also downwardly revised its forecasts for 2014, saying Wednesday it expects production to contract by 10% and exports and domestic sales to decline by 29% and 5.4%, respectively.