Brazilian President calls for the automotive industry to produce more in the country and import fewer vehicles

Brazilian President Luiz Inácio Lula da Silva said yesterday that he wants the automotive industry, one of the leading industries in the country and the most important in Latin America, to produce more in the country and import fewer vehicles.

“We must stop importing and manufacturing so many cars in Brazil. If we have 30 automotive industries in Brazil, we have to produce cars here”, said Lula in an interview with TV 247.

The president expressed hope at a time when at least four major automakers in the country (General Motors, Stellantis, Hyundai, and Mercedes-Benz) recently announced collective vacation periods, citing low market demand and shortages of parts, such as electronic components.

“How is it that we are going through what we are going through in the automotive industry?” asked Lula, for whom the country’s business elites stopped “thinking about Brazil.”

The Brazilian president said he intends to meet with the country’s automotive industry to understand what is happening and again criticized the level of the basic interest rate, currently at 13.75 percent, which makes credit more expensive.

February’s new vehicle sales were the lowest for the month since 2020. The total licensed in the first two months were up 5.4 percent over the same period in 2021, with 272,800 units, according to data from the association representing the sector, Anfavea.

The Brazilian automotive industry’s production capacity currently stands at 4.5 million vehicles per year, compared to production in 2022 of about 2.37 million units and a forecast for 2023 of 2.42 million vehicles.

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