By Alzira Rodrigues | Translated by Jorge Meditsch

The automotive sector is celebrating the best July internal sales results since 2019 with 225.6 thousand light and heavy vehicles licensed. Nonetheless, the production did not up with this performance, and was limited to 183 thousand units, 3.3% less than in June (189.2 thousand) and 16.5% under the registered in 2022 (219 thousand).

At the monthly press conference to inform the sector’s monthly figures, this Monday, 8/7, Anfavea’s president, Márcio de Lima Leite, explained that the reduction was a move to adequate plants and dealers stocks to the demand, which is beneficial to the sector.

“Despite some plant halts by collective vacations and temporary contract suspensions to adequate production to demand, the scenario shows stability”, he assured, informing that August began warmer than last year, with a positive forecast for the month.

Before the government discount program created in June, the inventories reached 251.7 thousand units – 122.2 thousand at the plants and 129.5 thousand in dealers’ stocks. In June they fell to 223.6 thousand and in July to 198.8 thousand – 73.6 thousand in manufacturers’ and 125.2 thousand in dealer’s inventories.

The inventory now corresponds to just 26 production days. I June they were 30 and in May, 33.

Lima Leite remembered that the government incentive package warmed the market at the end of June and the first half of July. “In last month’s second half the effect was diluted, but sales kept high due to diverse brands’ strategy keeping discounts”, said Anfavea’s president.

Anfavea did not yet revise its projections for the year and promised for October a possible change of the estimate made at the beginning of the year. Nonetheless, Lima Leite admitted that the internal market could grow by something close to 5%, some more than the 3% estimated by the entity.

Year-to-date, the internal market had 1.224 million units sold, a 11.3% growth over last year’s first seven months. Production reached 1.315 million units, 0.3% more in the same comparison. The plants are producing less specially due to the exports fall, which reached 10.6% this year.

Photo: VW

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