Automotive industry production falls 99% year-on-year

Since records began of the automotive industry’s performance in 1957, production in April 2020 reached the lowest level yet, according to figures released today by the National Motor Vehicle Manufacturers Association (Anfavea). With almost all factories stopped during the month, only 1,847 vehicles were produced, including automobiles, light commercial vehicles, trucks and buses, a fall of 99% over the previous month, and 99.4% over April last year.

In addition, 1,752 self-propelled machines were produced, 59% less than in March. The agricultural machinery sector is considered essential by the federal government even in a pandemic period, as it helps to maintain the level of harvest in the rural sector.

The sharp drop in production was accompanied by dramatic declines in sales to the domestic market and exports. Vehicle licensing was at 55,700 units – 76% lower than in April 2019, the worst result in 20 years.

The truck segment decreased 53.5% in the same period, and the machinery segment dropped 23.9%. Exports, meanwhile, plunged 79.3% for vehicles (the worst volume since January 1997) and 62.1% for machines, compared to the same month last year.

Inventories at the turn of the month were 237,000 units between factories and dealerships, sufficient for four months of sales at the current slow pace, which explains the difficulty in resuming production at all factories.

See the main figures of the sector in 2020:

Source: Anfavea

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