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Montevideo, January 23rd 2022 - 00:00 UTC

 

 

Brazilian car industry expanded 11% last year but still below 2018/19 potential

Tuesday, January 11th 2022 - 13:53 UTC
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This year ANFAVEA estimates a production increase of 9,4% equivalent overall to 2,46 million units This year ANFAVEA estimates a production increase of 9,4% equivalent overall to 2,46 million units

Brazil's National Association of Automotive Vehicle Manufacturers, ANFAVEA said that the 2021 market had a significant improvement to the critical production level of 2020, but was still short of the potential of the industry both in domestic and foreign markets. Nevertheless, Brazilian exports of automobiles reach US$ 7,6 billion.

The global semi-conductor shortage caused several plant shutdowns throughout the year because of sufficient electronic components, which is estimated to have cost the industry 300,000 units less. In 2022 constraints are still expected to continue, but at a lower rate, so the recovery overall should be much stronger, according to ANFAVEA president Luiz Carlos Moraes.

Last year the auto industry production was 11,06% higher than in 2020 totaling 2,25 million units. This year ANFAVEA estimates a production increase of 9,4% equivalent overall to 2,46 million units. Output for the domestic market this year should reach 2,3 million units, up 8,5% while exports should reach 390,000 vehicles, a 3,6% increase over 2021, but still far from the 2018 record of 629,000. .

However Moraes looking ahead to the next twelve months, besides electronic gadgets shortages also mentioned the macroeconomic scenario, both domestically and globally, with higher interest rates, inflation, budget and fiscal challenges, lack of sufficient jobs and the electoral year, when president Bolsonaro is expected to bid for reelection against a formidable contender Lula da Silva with an extremely divided public opinion. “And not mention the expanding Omicron variant”.

Moraes said that despite disappointing compared to 2019 and the Brazilian auto industry potential, the 2021 performance was in line with other markets. In the US sales increased 3%, in Italy, 4%, Mexico, the best performing with 7% expansion.

“Brazil recovered last year its position as the world's seventh manufacturer of cars, overtaking Spain and just a few units behind France”, pointed out ANFAVEA president.

Finally despite restrictions imposed by Argentina, swift recovery in Chile, Peru, Colombia and Uruguay helped boost Brazilian car exports

Categories: Investments, Brazil.

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