ANFAVEA increases automotive export projections by 20%

ANFAVEA (the national association of automotive vehicle manufacturers) revised the sector’s export expectation for 2021 from 353,000 to 389,000, a 20% increase over the total number of vehicles shipped in 2020. In the previous forecast, the association had projected an increase of only 9% in foreign sales.

According to the president of ANFAVEA, Luiz Carlos Moraes, “it has never been so difficult to make projections in Brazil. In addition to socioeconomic variables, we now also have to take into account the pandemic situation, the vaccination pace, political instability, and this global semiconductor crisis, which we could hardly foresee,” said Moraes.  He also stressed that a possible electricity rationing did not even enter the Association’s calculations.

When disclosing the sector’s balance for the first half of the year, Anfavez highlighted that the closing of the first half of 2021 was a little short of what the auto industry predicted, mostly due to the global crisis in the supply of semiconductors, materials used in all automotive electronic components.

According to figures released today, 1,148,500 vehicles left the assembly lines in the first half of the year, 57.5% more than the 729,000 in the same period last year, when all factories were shut down for up to two months. In a fairer comparison, with the first half of 2019 (before the pandemic), there was a retraction of more than 300 thousand units, or 22%.

“We estimate that the lack of semiconductors prevented something between 100,000 and 120,000 vehicles from being produced in the first half. This problem affects all producing countries and has prevented the full resumption of the automotive sector”, explained Luiz Carlos Moraes.

In June, the production of 166,947 units was the worst in the last 12 months due to several stoppages at car factories throughout the month – a situation that has been happening since the first quarter.

Source: ANFAVEA

The low offer of some products ends up reflecting on the results of the domestic market. In the first six months of 2021, 1,074,000 units were licensed in the country, 32.8% more than in the same period of 2020 but 17.9% less than in the first half of 2019. Sales of 182,453 vehicles in June declined compared to the last two months.

The best news continues to come from the truck sector, boosted by the solid results in agribusiness and e-commerce, despite occasional problems with inputs. The production of 74,700 units in the first half is the best for the period since 2014, as well as the 58,700 units licensed from January to June.

Source: Comex do Brasil

To read the full original article, visit the link:

https://www.comexdobrasil.com/anfavea-reve-projecoes-e-aposta-em-alta-de-20-nas-exportacoes-de-veiculos-automotores-em-2021/

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