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Brazil’s Auto Industry See 22 Percent Drop in Production
Automakers in Brazil produced 265,900 vehicles in August, a 22.4 percent decline from the same month of 2013, the Brazilian Association of Automotive Vehicle Manufacturers, or Anfavea, said Thursday.
A total of 2.08 million vehicles rolled off the assembly line in the first eight months of 2014, down 18 percent from the same period of last year, according to Anfavea’s monthly report.
Compared to July, when public holidays declared on World Cup match days hurt vehicle output, production last month was up 5.3 percent.
Exports of vehicles made in Brazil climbed to 31,700 units, down 7.5 percent from July and a whopping 50.6 percent from August 2013.
A total of 235,400 vehicles were exported in the first eight months of 2014, down 38.9 percent from the same period of 2013.
Anfavea attributed the drop in shipments abroad to financial woes in Argentina, the destination for 90 percent of Brazilian auto exports.
In terms of value, auto sector exports, including parts, came in at $1.02 billion in August, down 39.5 percent from the same month of 2013. For all of 2014, those exports amounted to $8 billion, a 27.2 percent 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, give cause 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 percent 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 percent from the same period of 2013.
Sales in August were down 7.6 percent from July.
Anfavea left unchanged its 2014 forecast of a 10 percent drop in auto production, a 29 percent decline in auto exports, and a 5.4 percent decrease in domestic sales.
Published in Latino Daily News
Source: http://www.hispanicallyspeakingnews.com/latino-daily-news/details/brazils-auto-industry-see-22-percent-drop-in-production/31056#When:15:08:12Z
