Brazil auto exports grow 3.9% in 1Q23 despite worst output since 2004

Vehicle exports increased by 3.9% in the first quarter of 2023 compared to the same period in 2022. From January to March, 112,200 vehicles were shipped abroad, according to the sector’s balance sheet released on April 10 by the Sao Paulo-based National Association of Motor Vehicle Manufacturers (Anfavea).

The association also reported that vehicle production increased by 8% over the quarter. In the period, 496.1 thousand units were manufactured.

The president of Anfavea, Márcio de Lima Leite, notes that the first quarter of 2022 was the worst for the automotive industry since 2004, even though the number is up from last year. When comparing the production figures for 2022 and 2023, Leite declared, “We are experiencing in 2023 the worst quarter since 2004.”

Leite noted that during the studied period, eight factory shutdowns occurred, and two assemblers ended production shifts. According to him, the industry’s slowdown is primarily due to elevated interest rates, and vehicle production is significantly below average.

Sales in the first three months of this year grew by 16.3% compared to the same period in 2022, with the registration of 471.8 thousand units.

Trucks and cars

The production of passenger cars increased 9% from January to March compared to the same period last year, with the manufacture of 416.4 thousand units. Sales grew 15.1% in the quarter, with the registration of 346 thousand cars, while exports increased by 3.8%, with the sale of 90 thousand cars in the first three months of the year.

Truck manufacturing fell 28.8% in the first quarter of 2023, with the manufacture of 24,500 units. Sales increased by 6.6% in the period, compared to 2022, with the registration of 28.6 thousand units.

Márcio Leite claims that the industry is under observation because vehicle production is lower than anticipated for the year. “The scenario so far is one of observing what is happening with the market,” he stated.

However, according to the president of Anfavea, the industry maintains the expectation of growth for the year and is discussing with the federal government measures that can be adopted to support the sector.

Source: Comex do Brasil

To read the original news report, see: https://www.comexdobrasil.com/exportacoes-de-veiculos-crescem-39-no-trimestre-e-producao-do-setor-recua-ao-pior-nivel-desde-2004

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