Vehicle production declines due to imports

By Alzira Rodrigues | 11/8/23 | Translated by Jorge Meditsch

Despite a 10.2% growth in internal sales in October compared to September, national vehicle production fell by 4.4% from 208.9 thousand to 199.8 thousand units in the month.

For the first time, year-to-date performance became negative. Automotive production reached 1,950,585 vehicles in the first ten months of the year, versus 1,962,406 in 2022. The slight reduction can make it difficult for the sector to achieve a 2.2% production growth, as previewed by Anfavea in September.

The association maintains this goal, but its president, Márcio de Lima Leite, makes it clear that the imports increase is the main factor of the national industry deceleration:

“We could say that there was an inventory reduction, but it did not happen. It is clear that production has not benefitted from the sales growth due to a higher demand for imported products”.

Year-to-date, import sales reached 271.3 thousand units, 27% more than last year (213.7 thousand). National vehicle sales expanded by only 7.2% from 1.47 million to 1.58 million units. Meanwhile, vehicles made abroad share jumped from 12.2% to 15.7% in one year.

Anfavea informs that Chinese vehicle sales went from just 6.6 thousand units in the first ten months last year to 26 thousand in 2023 – an almost 300% growth.

Despite this, Lima Leite recalls that BYD and GWM, whose imports are growing in Brazil, announced heavy investments in the country:

“Those products are entering under an investment logics. It’s a preparation to produce in Brazil; in this sense, importing more at the first moment is valid. In this aspect, we are not worried”, commented the executive, making clear that future operations must be “real”, including local component purchases.