March 6, 2021

The production of vehicles in Brazil grows 2.97% in the first half

Vehicle production in Brazil grew 2.97% in the first half of this year, compared to the same period in 2018, but sales of motor vehicles abroad fell by 43.9%, the employers' association said on Thursday. .

According to the data of the National Association of Automotive Vehicle Manufacturers (Anfavea), from January to June, 1,543,729 vehicles were manufactured in Brazil, including automobiles, light commercial vehicles, trucks and buses, 44,659 more vehicles than during the first half of 2018.

However, automotive production in June fell, both in the comparison with the same month last year, and compared to May.

In relation to June 2018, production decreased by 8.36%, falling from 267,884 units to 245,482 in 2019, and in the comparison with May of this year, the decrease was 15.27%.

In May 2019, the production of vehicles increased 29.9% over the same month of the previous year, when automotive manufacturing suffered a sharp drop due to a truckers' strike that practically paralyzed the country.

Regarding the sale of vehicles abroad, the results remain negative and closed the first half of the year in red, bid by the drop in exports to Argentina, Brazil's main trading partner.

The sector's exports fell by 41.8% compared to the first six months of 2018, when 398,126 units were sold among automobiles, light commercial vehicles, trucks and buses. In the comparison with May, the decline was 4.95%.

The sales of vehicles abroad have had a red balance during 2019, mainly affected by the economic crisis in the gaucho country, which has also slowed the production of motor vehicles in Brazil, which would have been higher without the decrease in Argentine purchases.

The relief for the sector has been the domestic market where the sale of new vehicles increased 13.45% in the semester, compared to 2018, according to the National Federation of Automotive Vehicle Distribution (Fenabrave).

Employment also closed the first half of 2019 in red with a fall of 1.7% compared to the same period last year, and 0.6% in relation to May.

The Brazilian automotive industry, one of the driving forces of the country's economy, is in the process of recovering after the deep recession experienced in Brazil between 2015 and 2016, which led to a 7 percentage point loss of the gross domestic product (GDP).

However, the forecasts for this year remain weak and according to financial market projections the GDP of the country will only grow by 0.8% in 2019, after the 1% recorded in both 2017 and 2018.

. (tagsToTranslate) production (t) vehicles (t) Brazil (t) first (t) semester

Source link