Friday, September 5, 2014

Brazil: Automakers See a 22.4% Decline in August Compared to Previous Year

According to The Latin American Tribune, automakers in Brazil produced 265,900 vehicles in August 2014, a 22.4% decline from the same month of 2013, the Brazilian Association of Automotive Vehicle Manufacturers (ANFAVEA) said on Thursday (September 4).

A total of 2.08 million vehicles rolled off the assembly line in the first eight months of 2014, down 18% from the same period of last year, according to ANFAVEA’s monthly report.

Exports of vehicles made in Brazil climbed to 31,700 units, down 7.5% from July and a whopping 50.6% from August 2013.

A total of 235,400 vehicles were exported in the first eight months of 2014, down 38.9% from the same period of 2013.

ANFAVEA attributed the drop in shipments abroad to financial woes in Argentina, the destination for 90% of Brazilian auto exports.

COMMENT: In terms of value, auto sector exports, including parts, came in at $1.02 billion in August, down 39.5% from the same month of 2013. For all of 2014, those exports amounted to $8 billion, a 27.2% decrease from the same period of last year.

New factories set up by Nissan, Hyundai and China’s Chery and upcoming plants to be inaugurated by Jaguar Land Rover, Audi, BMW and Mercedes-Benz, however, gave some pause for optimism.

“We’re going to have a much better second half. We’re a long-term investment sector. If there wasn’t any potential, there wouldn’t be so much investment here,” ANFAVEA’s president, Luiz Moan Yabiku, told a press conference.

Auto sales in August, measured on the basis of vehicle registrations, totaled 272,500 units, 17.2% less than in the same month of 2013, while 2.23 million vehicles were sold in the year’s first eight months, down 9.7% from the same period of 2013.

Sales in August were down 7.6% from July.

ANFAVEA left unchanged its 2014 forecast of a 10% drop in auto production, a 29% decline in auto exports, and a 5.4% decrease in domestic sales.