Vehicle Exports Drop 16% Year-To-Date, Says Anfavea

Industry interest group Anfavea released data on Wednesday (10) regarding the performance of the Brazilian automotive market in 2023 and its exports. According to the trade association, Brazil sold 25.7 thousand units abroad in December, a 17.7% drop compared to the same month in 2022. Year-to-date, exports fell by 16% to 403.9 thousand units.

Mexico played a crucial role in supporting the industry throughout the year, with exports surging by 51% in 2023 compared to 2022. On the flip side, several other markets experienced declines, such as Argentina (-16%), Colombia (-53%), and Chile (-57%).

Márcio de Lima Leite, president of the association, pointed out that political issues in Latin America have adversely affected Brazilian exports. The nature of the decline also complicated the group’s ability to make projections for the current year. “I am quite confident that [forecasts] will be reviewed during the year. We do not have a scenario that clearly points to how exports will behave in 2024,” he stated in a press conference. For 2024, the association expects exports to reach 407 thousand units, a modest increase of 0.7%.

The Argentine market, one of Brazil’s primary clients, has grown harder to read due to changes in the government. “The government has signaled measures that, at first, will shrink the market. The big issue is not Brazil’s participation in Argentina but the downsizing expected to happen in the Argentine market,” he said.

On the import side, in 2023, China stood out, accounting for 12% of the total, marking a 431% increase compared to the previous year. This surge reflects the new technologies in the industry, with China taking the lead in areas like electric and hybrid cars.

Source: Anfavea

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