Brazil´s Automotive Sector Should Not Recover Best Moment Before 2030

Under normal circumstances, the Brazilian automotive sector is able to sell at least twice the volume recorded so far in 2020, but it is still doubtful whether automakers will be able to withstand the coming years on their own.

RIO DE JANEIRO, BRAZIL - In April, vehicle production virtually stopped nationwide due to the high risk of infection among workers, and in the ensuing months the results were not sufficient to offset such losses. With a still uncertain macroeconomic scenario and the Brazilian real depreciated, prices climbed and buyers retreated.

Nevertheless, the year 2020 should close with approximately two million new vehicles sold. The figure represents a 30% drop compared to 2019 and far from the historical 2012 mark, when 3.8 million cars were sold - due to more competitive prices and government incentives, which reduced the IPI (Tax on . . .

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