Tuesday, October 7, 2014

Brazil: World's 5th Largest Auto Sector Continues to Decline

According to The Latin American TribuneBrazil produced 300,845 motor vehicles last month, a 15.7% increase from August, but a decline of 6.7% compared with September 2013, the ANFAVEA auto industry association said Monday (October 6).

The higher production mostly reflected the introduction of new models, ANFAVEA President Luiz Moran Yabiku told a press conference.

ANFAVEA data reveals that output in the world’s fifth-largest auto sector has continued to fall over the past 12 months, prompting firms to furlough workers and temporarily shut down production lines,

Those steps, Yabiku said, aim to adapt production levels to decreasing domestic demand and a fall in exports to Argentina, which buys 90% of Brazil’s vehicle exports.

Brazil produced 2.38 million motor vehicles between January 1 and September 30, 2014, a 16.8% decline from the same period in 2013.

COMMENT: Last month, Brazil exported 26,724 vehicles, a 15.6% decline from August, and a 41.2% decrease from September 2013.

Exports for the nine first months of 2014 are down 38.5% from January-September 2013.

ANFAVEA expects to see an overall drop of 10% in vehicle production this year.

Sales in September, as measured by new vehicle registrations, amounted to 296,294 units, 8.7% more than in August and 4.4% less than September 2013.

Since January, 2.53 million vehicles were registered, a 9.1% decline compared with the same period in 2013.

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