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Montevideo, August 12th 2020 - 21:47 UTC

 

 

Auto production in Brazil jumps, but exports to Argentina are down 38.4%

Thursday, August 8th 2019 - 06:58 UTC
Full article 4 comments
Brazil’s auto industry is recovering from a crushing depression that cost the country its place as one of the world’s five biggest auto markets Brazil’s auto industry is recovering from a crushing depression that cost the country its place as one of the world’s five biggest auto markets
Anfavea president Luiz Carlos Moraes told reporters that 87.9% of Brazil’s auto market is fulfilled with domestically-made cars. Anfavea president Luiz Carlos Moraes told reporters that 87.9% of Brazil’s auto market is fulfilled with domestically-made cars.

Automobile production in Brazil jumped 14.2% and sales grew 9.1% in July from June, the best performance for the month since 2014, the national automakers’ association Anfavea said on Tuesday.

Brazil’s auto industry is recovering from a crushing depression that cost the country its place as one of the world’s five biggest auto markets, even as automakers are still struggling with low margins.

Auto exports to depressed Argentina, Brazil’s largest foreign destination for its cars, are down 38.4% so far in 2019 compared to a year ago, Anfavea said.

Trade rules in Brazil are changing under a right-wing government that has promised to open up one of the world’s largest but most closed economies. Automakers are figuring out what to do following an initial trade deal with the European Union, as well as changes in trade rules with Mexico, both of which could usher a flood of foreign vehicles into the country.

Anfavea president Luiz Carlos Moraes told reporters that 87.9% of Brazil’s auto market is fulfilled with domestically-made cars.

He said Brazil already has a lot of competition, but said that automakers struggle with high and complex taxes that Anfavea is pushing to change.

Automakers in Brazil produced some 266,400 new cars and trucks last month, while new vehicle sales totaled 243,600 vehicles, according to Anfavea data.

Compared to a year ago, auto output rose 8.4% percent and sales climbed 12%.

Categories: Economy, Argentina, Brazil.

Top Comments

Disclaimer & comment rules
  • Zaphod Beeblebrox

    “Last April, retail sales were 13.4 per cent less than April the year before.”

    Maybe they were, but cherry-picking data that fits your narrative does not provide the complete picture.

    The year-on-year retail sales show fluctuations but there was a declining trend from 2014 to 2017 when it increased and has been relatively constant since 2018.

    https://tradingeconomics.com/argentina/retail-sales-annual

    You also failed to point out that retail sales increased in May compared to April.

    Facts are important Enrique and they need correct interpretation.

    I can't add more than one link to Mercopress but the same web site shows that Argentine consumer confidence has been on a sharp upward trajectory since April. Maybe resident Argentines have more optimism about their economy than you do?

    Aug 09th, 2019 - 04:57 pm 0
  • Enrique Massot

    @ZB

    “Auto exports to depressed Argentina...are down 38.4% so far in 2019 compared to a year ago...”

    Let's see if this direct quote from the story above inspires eternally optimistic Zaphod to find some argument that mitigates the obviously bad numbers, in tune with most Argentine economic indicators, that car sales say about the situation.

    In case you run short, Zaphod, I will try to help:

    1. Fewer car sales mean less CO2 gases emitted, promoting a reduction in global warming effects.
    2. Fewer cars will force Argentines to walk or cycle more, therefore becoming healthier. Macri has thought of everything!
    3. Fewer cars in circulation will reduce rush hour traffic jams.
    4. Fewer cars will mean less road construction / repairs, saving the government money that can be usefully spent on foreign debt interest payments. (Don't even think about principal repayment).
    5. Public transit will benefit from more passengers -- not that there is much room left on them!

    Other ideas, Zaphod?

    Aug 09th, 2019 - 08:15 pm 0
  • :o))

    @Zaphod Beeblebrox

    Are the days of going-around-with-a-begging-bowl over for Argentina?

    Aug 10th, 2019 - 10:13 pm 0
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