Vehicle production falls in both Brazil and Argentina

According to Anfavea data (Brazil’s National Automobile Manufacturers Association), a strong drop in vehicle exports has significantly impacted production in Brazil. Brazil’s total vehicle exports in January were down 46% to only 25,000 units, compared to 46,400 units shipped in the same period last year. Revenues from vehicle exports were down 29.1% to US$712m against US$1bn from 2018. The production of vehicles fell 10% in January year-on-year, to 196,800 down from 218,700 last year. However, considering the last 12 months, the country saw a 2.9% growth in auto production to 2.86m from February 2018 to January 2019. 

Anfavea highlight lower demands from Argentina, one of Brazil’s top car export destinations, as one of the reasons for the drop in exports. Argentina’s Automobile Manufacturers Association (Adefa) data suggest the country’s vehicle sales to dealers reduced by 53.4%, while car registration reached the lowest in the decade, down by 50.4%. 

In Argentina, auto production has shrunk for the fifth month in a row. Adefa statistics show the country’s auto production has fallen 32.2% to 14,803 units in January year-on-year. The organ said, although the Argentine auto sector took off at the beginning of 2018, the mid-year financial crisis has caused the country’s output, and sales to fall below historical averages. 

Argentina’s auto exports have also fallen for the last two months after 12 months of growth. In January shipments were down 28.9% year-on-year to 7,403 units. Argentina’s largest vehicle export destination, Brazil imported 4,346 units in January, down 41.18% year-on-year.

Source:

https://www.comexdobrasil.com/exportacao-de-automoveis-desaba-46-em-janeiro-forte-queda-e-lamentada-pela-anfavea/

http://en.mercopress.com/2019/02/07/argentina-s-auto-production-down-32.2-in-january-compared-to-a-year-ago

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