Imports of Chinese auto parts see steady drop in Brazil

Brazil continues to lower its imports of Chinese-made auto parts while expanding acquisitions from the United States and Mexico. A report from Sindipeças indicates that imports from China have fallen by 7.6% year to date through September, dropping from $2.4 billion in the first nine months of 2022 to $2.2 billion this year.

In contrast, the United States increased its business with Brazil by 2.3%, from $1.79 billion to $1.83 billion, while Mexico increased by 3.5%, from $1.03 billion to $1.07 billion. The share of U.S. parts reached 12.8% this year, very close to Chinese parts, which stand at 15.5%.

The top five sellers of automotive components to Brazil are, in order, China, the United States, Germany, Japan, and Mexico. Just like purchases from the Chinese industry, acquisitions from Germany and Japan are also declining by 5.5% and 6.6%, respectively, with this year’s business amounting to approximately $1.42 billion and $1.22 billion.

In total, auto parts imports reached $14.4 billion in the year, with a 3.8% decrease, reflecting “the weak performance of the domestic activities of the automotive sector,” as emphasized by Sindipeças in its trade balance report.

The chart below shows Brazilian imports of auto parts between Jan 2020 and Aug 2023, measured in TEUs. The data is from DataLiner.

Brazilian auto parts imports | Jan 2020 – Aug 2023 | TEU

Source: DataLiner (click here to request a demo)

In September, foreign purchases amounted to $1.48 billion, showing a decline both compared to the same month last year (-13.3%) and compared to August (-15.9%).

On the other hand, exports are on the rise for the year, reaching $6.9 billion with a positive variation of 13.7%, but they also decreased last month. The decline was 7.4% in the year-over-year comparison and 17.5% month on month. The primary buyer of Brazilian auto parts is Argentina.

With these performances, the auto parts industry continues to reduce its trade deficit, which stands at $7.5 billion for the year through September, a value 15.8% lower than the same period in 2022.

Source: Autoindústria

To read the original text, please refer to: https://www.autoindustria.com.br/2023/10/24/importacoes-de-autopecas-chinesas-seguem-em-queda/

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