Brazilian auto parts market down 2% in imports; exports up 18.6%

While imports of Chinese vehicles, primarily electric and hybrid models, are on the rise, the purchase of auto parts manufactured in the Asian country is declining.

From January to July, a total of $1.72 billion worth of auto parts were imported from there, a 5% decrease compared to the same period last year ($1.8 billion). The data was released by the MDIC (Ministry of Development, Industry, Trade, and Services) and consolidated by Sindipeças, which updated the trade balance report for this year on its website.

China remains Brazil’s main auto parts supplier, followed by the United States, Germany, and Japan. In the case of Japan, there was also a decline in business by 7.6%. Japan imported $948 million worth of auto parts this year, compared to just over $1 billion from January to July 2022.

Overall, auto parts imports have decreased by 2% this year, from $11.38 billion to $11.15 billion in the comparison between the first seven months of 2022 and the same period this year.

The total imports of auto components measured in TEUs at several Brazilian ports that receive the most of this type of cargo are displayed below from 2019 to 2023. It should be noted that the data for 2023 only extends until July. The data is from DataLiner.

Imports of auto parts by port | 2019 – 2023 | TEU

Source: DataLiner (click here to request a demo)

On the other hand, exports, directed to 194 countries, grew by 18.6%, from $4.5 billion to $5.3 billion. As a result, the trade deficit in the auto parts industry fell by 15.5%, from almost $6.9 billion to $5.8 billion by July.

The main market for Brazilian auto parts is Argentina, with a significant share of 36.4%, followed by the United States and Mexico. For the neighboring country, $1.95 billion worth of auto parts were shipped in seven months, a 20.6% increase compared to the same period last year.

The United States purchased $818.4 million worth of Brazilian auto parts, an expansion of 13%, and Mexico imported a total of $517.1 million, an increase of 9.7%.

Source: Autoindústria

To read the original news report, visit: https://www.autoindustria.com.br/2023/09/12/importacao-de-autopecas-cai-2-e-exportacoes-crescem-186/

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