Brazilian Auto Parts Industry Struggles With Plunging Exports

In contrast to the previous year, which saw a surge in foreign sales, the Brazilian auto parts industry, this year, is facing challenges in expanding its international business.

Exports, directed to 181 markets, totaled US$1.8 billion in the first quarter, marking a 15.2% decrease compared to the same period in 2023 (US$2.2 billion), according to data from the Ministry of Development, Industry, Commerce, and Services (MDIC), consolidated by Sindipeças.

The group notes in its monthly report on the sector’s trade balance that “the crisis in Argentina and the slowdown in the automotive market in neighboring countries have certainly affected commercial transactions.”

Meanwhile, imports from 126 different origins grew marginally by 0.6%, reaching US$4.8 billion, compared to US$4.8 billion in the corresponding period last year. Notably, March saw imports totaling US$1.8 billion, indicating a 31% increase compared to February 2024, albeit reflecting a 1.9% decline compared to March 2023.

In the monthly export comparison, March recorded US$650.7 million, a 6.3% growth from February 2024 (US$611.9 million) but an 18.4% decline from March 2023 (US$797.2 million).

The Sindipeças monthly report further states, “As a consequence of the performance described above, the trade balance presented a deficit of US$2.9 billion, marking a 13.8% increase compared to the same period of the previous year.”

In March alone, the deficit expanded by 11.1% compared to the same month in the previous year and by 67.4% compared to February.

Among the top three export destinations for the quarter, there was a notable 20% decrease in business with Argentina, amounting to US$600 million this year, and a 7.3% drop with the United States (US$317 million). On the positive side, sales to Mexico witnessed a 5.8% increase, reaching US$223.4 million.

Source: Balcão Automotivo

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