MercoPress. South Atlantic News Agency

Encouraging second half first month for Brazilian car manufacturing

Numbers from Anfavea, point out that in July, production reached 170,300 units, an increase of 73% over June, but still 36.2% lower than the same month last year

Brazilian car manufacturing started to recover during the first month of the second half of the year. Numbers released by the National Association of Automotive Vehicle Manufacturers (Anfavea), point out that in July, production reached 170,300 units, an increase of 73% over June, but still 36.2% lower than the same month last year. Despite the increase, it was still the worse July since 2003.

Vehicle license plates (174,500) grew 31.4% over June, but fell 28.4% compared to July 2019, the worse volume since 2006. Exports rose 49.7% month-on-month, but decreased 30,8% year-on-year. In the accumulated result for the year, the most dramatic fall was in production (48.3%), the lowest of this century, followed by exports (43.7%) and licensing (36.6%).

“In addition to a greater number of working days, July was a month in which the automakers and dealerships made a great effort to recover the cash strapped industry by the long quarantine“.

However the pace of daily sales was only 20% higher than in June, which required caution in analyzing how the recovery will be in the second half. We still have a pandemic that has not stopped, with increasing cases of Covid-19 in important states of the country.

”It looks as if we were on a winding road and with heavy fog, with great difficulty in seeing the horizon clearly,” remarked Luiz Carlos Moraes, President of Anfavea.

As has been happening since the beginning of the pandemic in Brazil, the truck and machinery segments have been able to maintain sales, although this does not mean any growth on the previous year. The only positive indicator in the accumulated result for the year is the sales of agricultural and road machinery which are 1.3% higher than in 2019.