Brazilian car exports drop 17% amid economic crisis in Argentina

With just a few days left in the year, Brazil’s National Association of Motor Vehicle Manufacturers (ANFAVEA) released its assessment of the automotive sector for the year, along with projections for 2024. The closing year saw a significant increase in the domestic market, production stability, and a decline in Brazilian car exports. For the upcoming year, expectations are set for further growth.

Domestic Market – After a first half below expectations, there was a noteworthy surge in vehicle sales starting from August, reaching an average of 10.6 thousand units per day in November. The year is expected to conclude with 2.29 million registrations, an 8.8% increase from 2022, surpassing the 6% projected by the association.

Production – Despite the growth in the domestic market, production declined by 0.5% for the year due to a decrease in exports and a significant increase in imports. The estimate, just a few days before the year-end, anticipates a cumulative production of 2.359 million vehicles. For the next year, ANFAVEA expects a growth of 4.7% in this volume, representing 2.47 million units produced.

Brazilian car exports – Following strong growth in 2022, shipments this year decreased by 17%, totaling 399 thousand units. Aside from a downturn in the domestic markets of important destinations such as Chile and Colombia, there was a noticeable loss of Brazilian product market share in Argentina, our largest trading partner, to the point where Mexico surpassed it for the first time in history.

If Brazilian-made cars still held a 49% share in the Argentine market, as they did four years ago, we would have sold 95 thousand more units this year, given the growth in that market. However, the Brazilian share dropped to 27%. For 2024, ANFAVEA projects total exports of 407 thousand units, a slight increase of 2% compared to 2023.

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