Brazil’s new vehicle sales down 23.1% in worst November in 16 years – FENABRAVE

RIO DE JANEIRO, BRAZIL – Affected by the lack of models in dealerships, the new vehicle market in Brazil dropped 23.1% last month against the same period in 2020. In the sum of passenger cars, light SUVs, trucks and buses, 173,000 units were sold in November, according to a balance released on Thursday, December 2, by the dealers’ association FENABRAVE.

By not repeating the very poor performance of September and October, the two worst months of the year, the industry averts the risk of closing 2021 below 2020, as forecast by the automakers’ association, ANFAVEA. Nevertheless, the sector had its worst November in terms of sales in 16 years in the sum of all categories.

The lack of electronic components due to the global chip shortage remains unabated, compromising the supply of products in dealerships. Last month, the production of cars was again completely suspended at Honda (7 days in Sumaré and 2 in Itirapina) and at Volkswagen plants in São José dos Pinhais (2 weeks) and Taubaté (5 days).

In addition, Volks’ production in ABC Paulista and General Motors (GM) in São José dos Campos (São Paulo) was partially suspended, with the reduction of one shift, while 1,800 workers of Fiat’s second shift were absent from the plant for the second month.

In the year-to-date, sales reached 1.91 million vehicles last month, 5.4% more than in the same period in 2020. However, it should be noted that the comparison base is low. Last year sales were affected by the arrival of the pandemic in Brazil, which led to the shutdown of car dealerships in some of the largest markets for at least 2 months.

When commenting on the November result, FENABRAVE chairman Alarico Assumpção Júnior pointed out that the offer and approval of credit are still at a good level, but car sales are “influenced” by vehicle availability. He said the rise in interest rates may affect demand in the coming months.

“Given the challenges faced in recent months, such as the global supply crisis and high interest rates in Brazil, I think it is a great performance, even if over a lower comparative base in 2020,” Alarico said when assessing last month’s performance.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error