Automotive production in Brazil declined 17% in June, reports Anfavea
The production of automotive vehicles experienced a 17% decline in June compared to the previous month, with 189.2 thousand units produced, down from 227.9 thousand in May.
This decrease was influenced by the launch of the government’s vehicle discount program and temporary factory shutdowns announced by automakers.
Compared to June 2022, production fell by 7.1%.
During the first half of 2023, there was a 3.7% increase in production compared to last year.
The data provided by Anfavea (National Association of Automotive Vehicle Manufacturers), includes cars, light commercial vehicles, trucks, and buses.
Exports also experienced a drop of 17.4% in June compared to May and a 22.6% decrease compared to June 2022.
In total, 227.2 thousand units were sold to other countries during the year’s first half.
Focusing on cars alone, production declined by 18.5% in June, with 142.6 thousand vehicles manufactured, compared to 175.1 thousand in May.
Light commercial vehicles decreased 11.6% compared to the previous month, with 37.6 thousand units produced.
Truck production dropped by 16.2% in June, with 7,000 trucks manufactured. However, bus production increased slightly by 0.1%, with a total of 1,949 buses produced.
In addition to the vehicle discount program, which offers up to 10.96% discounts for popular cars, June also saw temporary factory shutdowns.
Volkswagen halted car production in three factories, while General Motors slowed down production at its plants.
These measures were implemented due to market stagnation and the need to align production with current market demand.
The vehicle discount program, established by MP 1,175/2023, has already utilized 92.3% of the allocated credit of R$650 million.
The program also includes credit lines for fleet renewal of buses, vans, and trucks, with funds of R$300 million and R$700 million respectively.
Despite the temporary challenges faced by the automotive industry, production in the first half of 2023 showed overall growth compared to the previous year.
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This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief