Brazil Auto Sales Flat in 2022


Brazil Auto Sales Flat in 2022
New cars parked at a harbor yard in Paranagua, Brazil. © Rodrigo Luft

Passenger car registrations in Brazil rose 5% in December and were flat for 2022, gradually recovering in number after a lack of semiconductors for new vehicles depressed availability during the first few months of the year, according to data released Jan. 6 by Brazil’s automobile manufacturers association.

“After a very difficult first quarter due to the lack of semiconductors, the sector accelerated the pace and managed to meet part of the repressed demand in the internal and external markets,” Anfavea President Márcio de Lima Leite said in a press release.

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The National Association of Motor Vehicle Manufacturers, or Anfavea, reported that passenger car registrations – for locally manufactured and imported cars – increased in December to 216,923 units, compared to 207,053 units. That was the highest monthly total in 2022, and only the third time that sales topped the 200,000-mark last year, with the others occuring in August and November. Monthly sales figures didn’t top the 150,000 units mark until May. This confirmed the stability the association said it had seen since the middle of 2022.

For full-year 2022, total automotive sales decreased to 2.1 million units, just 1% below 2021’s total. For this year, the association projects sales of 2.2 million vehicles, a 3% increase.

In December, the country exported 31,242 vehicles in December, a 25% drop from 41,581 in the same month in 2021. However, for full-year 2022, Brazil exported 480,947 vehicles, a 28% jump from 2021. Although Anfavea had projected a 22% increase for last year, it said the larger increase was still surprising, given the foreign trade restrictions imposed by Argentina, its biggest trading partner. A boost in exports came in the form of shipments to all other Latin American markets, the association noted, especially Mexico, Colombia and Chile.

The South American country’s automotive assembly lines produced 191,500 units in December, a 9% decrease from 210,925. During 2022, Brazil’s auto makers produced 2.37 million units, a 5% increase from 2021. The association noted that factors contributing to the increase for the full year included a reduction in plant shutdowns in the second half of 2022, along with an improvement in the flow of electronic components. For this year, the association projects an increase of 2% in production to the 2.42 million mark.

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Brazil    Market Topics    Region    South America