Vehicle Production and Sales Experience Significant Drop in April, According to Anfavea

Production And Sales Of Vehicles Register Significant Decline In April, According To Data Released By Anfavea, Representative Association Of Automakers In Brazil.

Car, pickup, sport utility vehicle, commercial van, truck, and bus production decreased by 19.4%, while new vehicle sales fell by 19.2% compared to the previous month.

The automotive industry attributes these negative results to the unfavorable environment of high-interest rates, which directly impacts the decline in demand for new vehicles, the anticipation of truck and bus purchases at the end of last year, and the supply of components that is still not stabilized.

In April, Vehicle Production In Brazil Reached The Lowest Level At Least Since 2020, Totaling 178.9 Thousand Units.

Meanwhile, registrations amounted to 160.7 thousand units. Gerdau, an important steel supplier for the automotive industry in the country, reported last week that at least eight vehicle factories in Brazil were halted.

When compared to the same period last year, last month’s production fell by about 4%, while sales rose by 9.2%. In the first four months of this year, production showed an increase of 4.8% compared to the same period in 2022, totaling 714.9 thousand vehicles. Meanwhile, sales advanced by 14.4% in the period, totaling 632.5 thousand units.

Vehicle Exports Registered A Decline Of 24.1% In April Compared To The Previous Year, Totaling 34 Thousand Units Exported.

In the accumulated first four months of the year, exports showed a decline of 4.3%, with a total of 146.3 thousand units sold to other countries.

The decline in production and sales of vehicles points to a concerning scenario in Brazil, as the automotive industry plays a fundamental role in the national economy, contributing to job creation and driving various sectors. The expectation is that measures will be adopted to stimulate the recovery of the sector in the coming months.