SAO PAULO, Oct 8 (NNN-CMA) – Vehicle production in Brazil, Latin America’s largest economy, fell 11 percent in Sept year on year, but with 220,162 units produced, it still marked the best monthly performance of 2020, the National Association of Vehicle Manufacturers (Anfavea) reported yesterday.
Manufacturers predict as a result of the COVID-19 pandemic, 2020 will end as the worst year so far this century, for Brazilian vehicle exports.
In the first nine months of the year, manufacturing plunged 41.1 percent, compared to the same period in 2019, according to data released by automakers based in Brazil.
However, Sept vehicle output was 4.4 percent higher than Aug. Sales also suffered, falling 11.6 percent in Sept, year on year, and 32.3 percent over the nine-month period.
But vehicle sales increased 13.3 percent in Sept, compared to the previous month, to reach 207,710 units, marking a recovery, Anfavea’s president, Luiz Carlos Moraes, said.
“There are positive signs amid the pandemic,” such as “high interest in individual transportation and the traditional rise of the end-of-year market, but there are other risks, such as, the reduction of emergency subsidies, due to the pandemic, the drop in purchasing power, unemployment and inflation,” the executive said in a videoconference.
Brazil’s production forecast for all of 2020 is 1.915 million units, a 35 percent drop, compared to 2019 and the worst result since 2003.
Regarding Brazilian domestic vehicle sales, Anfavea forecasts a 31 percent drop in 2020 compared to 2019, the worst result since 2005.
“We will have a dramatic drop in all the industry results,” said Moraes, adding, Sept’s recovery “is still a relief compared to what we saw at the beginning of the pandemic.”– NNN-CMA
