Brazil Auto Sales, Production Drop in October


Brazil Auto Sales, Production Drop in October
Employees work on a vehicle assembly line in Camacari, in Bahia State, Brazil. © Joa Souza

Passenger car registrations and automotive production in Brazil both dropped in October to the lowest levels for the month in five years, according to data released by Brazil’s automobile manufacturers association. Although some manufacturers’ factories returned to operation, limitations on the availability of electronic components had an impact on production.

The National Association of Motor Vehicle Manufacturers, or Anfavea, reported that passenger car registrations – including locally manufactured and imported cars – fell 25% to 162,300 vehicles, compared to the same month in 2020, but were up 5% from September this year.

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Production of passenger cars in Brazil also fell by 25% year over year, to 177,900 vehicles. Generally, October is a month of very high production to supply stores in the final stretch of the year, when demand tends to be higher, the association said. However, the limitations on the availability of electronic components hindered production.

Sequentially, trucks experienced a 2% drop in production and 5% decline in sales in October, compared to September, which the association said indicated the segment was beginning to be affected by the global lack of semiconductors. The segment had been on the rise since the middle of last year.

The association noted that domestic market sales and reduced inventories in Brazil accurately reflect what is taking place in production, where everything that is produced is quickly passed on to customers.

Brazil exported 29,800 vehicles in October, down 15% from a year earlier. Year-to-date through October, the country has exported 241,900 vehicles, up 27% from the same period last year. According to the association’s president, the numbers are in line with projections a month ago, which showed timid growth in exports compared to last year. This differed from expectations at the start of this year, which projected stronger growth.

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