Auto exports slight decrease in July ends three-month hike in Brazil

Despite four factories temporarily shutting down throughout the month, July saw the greatest level of output since November 2020. There were 218,950 cars manufactured, a 7.5% increase over June and a 33.4% increase over July 2021, when the global semiconductor crisis caught the sector off guard. According to data analysis conducted by the National Association of Automotive Vehicle Manufacturers (ANFAVEA), the 1.3 million units produced this year have already reached the same level as the first seven months of last year.

“There were and still are numerous unfinished automobiles in the yards of automakers, only waiting for key electronic components. These models will only enter the production statistics when they are fully finished, which is happening more frequently, hence the recent improvement in the production flow. We still have input and logistical constraints, as these plant shutdowns illustrate. Still, we are receiving more semiconductors now than last year and in the first quarter of this year,” stated Márcio de Lima Leite, President of ANFAVEA.

Auto exports from Brazil in July totaled 181,994 units, the second-best monthly result of the year, falling short only after May. However, in terms of sales per business day, July scored the highest average of 2022, with 8,700 units licensed per day, compared to 8,500 in May and June. In July, overall domestic sales increased by 2.2% over the previous month and by 3.7% over July 2021. This year, the disparity is still 12%, with 1.1 million license plates.

In July, auto exports from Brazil resulted in 41.9 thousand vehicles sold abroad, 11.4% less than in July and 76.3% more than in July 2021. Nevertheless, the year-to-date volume of 288 thousand units exceeds the result attained at the same time the previous year by 28.7 percent.

Exports remain strong, albeit sales fell in July after three months of improvement. The finding is attributed to Argentina’s financial crisis, in which the government has restricted the outflow of dollars from the nation.

Although Brazil has increased its presence in important Latin American markets, Argentina still accounts for 30% of national vehicle shipments.

Brazilian exports of passenger vehicles | July 2022 | Units

Source: Anfavea

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