Anfavea: Brazil’s automotive business updates

Brazil’s Automotive Business

According to Anfavea (National Automobile Manufacturers Association), Brazil has experienced a surge in vehicle sales in October which increased by 25.6% to 254,700 units, year-on-year. That brings the total to 2.1m units in first ten months of 2018, up 15.3% year-on-year. Vehicle production held up well in October too, thus rising 5.2% to 263,200 units year-on-year. The country has produced 9.9% more vehicles, reaching 2.4m units between January and October, compared to the same time last year.

Anfavea lowered this year’s export forecast by 8.6% to 700,000 units, compared to an earlier estimate of 766,000 units. The organ believes economic instability and reduction in exports to Argentina are the main reasons for the lower estimate. Exports to Argentina fell by almost 2% in October, compared with September, and by 37.3% YoY to 38,700 units. Revenues earned from car exports slumped 38.6% to US$693.7m over the same period comparison. Brazil’s year-to-date revenues from car exports fell 6.7% to US$10bn year-on-year.

Anfavea reported massive growth in farm machinery sales in October, up 35.3% to 5,048 units year-on-year. Cumulative sales reached 39,611 units in the first ten months of 2018, up 10.6% year-on-year. However, farm machinery exports fell 27.2% to 1,092 units in October YoY as the direct result of a fall in demand from Argentina. Brazil produced a total of 53,582 units of farm machinery in the first ten months of this year, up 14.9% YoY.

Meanwhile, Brazil’s CKD bus exports experienced a massive slump in October, falling 56% to 131 units. CKD truck exports dropped marginally by 0.3% to 1,156 units, compared to the previous month. CKD light vehicle exports remained unchanged. The graph below uses Anfavea data to depict Brazil’s CKD vehicle market:

Argentina’s automotive business

Data from Argentina’s Vehicle Manufacturers’ Association (Adefa) shows that its vehicle market held up well, despite high inflation and high interest rates. Vehicle production rose 3.7% to 409,366 units in the first ten months of 2018, year-on-year. Vehicle exports jumped 27.9% over the same period to 220,365 units. More recently in October, vehicle exports fell 5.6% to 22,028 units compared to September. The historical trend for the Argentinian vehicle market is shown below using Adefa data:

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