Vehicle production in Brazil grows 11.6% in 2021, despite shortage of semiconductors

RIO DE JANEIRO, BRAZIL – Production of passenger cars, light trucks, trucks, and buses in Brazil rose 11.6% in 2021 compared with 2020, the manufacturers’ association Anfavea announced Friday (7). A total of 2.24 million vehicles were produced last year, compared with 2.01 million in 2020.

In December, production remained practically stable compared to the same period in 2020. 210.9 thousand vehicles were produced, compared to 209.3 thousand – a slight increase of 0.8%. “This is a perfect figure considering the scenario we live in,” said Luiz Carlos Moraes, president of Anfavea.

He points to the shortage of semiconductors that have affected the industry since the middle of last year.

PROJECTIONS FOR 2022

In addition to releasing its 2021 results, Anfavea also provided projections for sales, production, and exports in 2022.

The company expects production to grow 9.4% to 2.46 million units. Vehicle registrations are expected to grow at 8.5% to 2.3 million units at a more discrete rate.

Finally, expectations for exports are less optimistic at 3.6%. If confirmed, shipments of vehicles abroad should reach 390 thousand units.

Although the forecasts for the three modalities are high, Anfavea said that the values could be even higher if access to credit were easier and taxes were lower.

In addition to the tax burden, the semiconductor crisis continues to worry the industry. According to the association, manufacturers currently have only a four-week forecast of parts availability, which prevents long-term planning.

EXPORTS

Of the total number of vehicles produced in 2021, 376,383 were exported. The volume represents an increase of 16% compared to 2020. However, there were significant changes in the destinations of exports. Argentina remains the most critical customer for Brazilian vehicles.

However, its share decreased from 50% to 34% in 2021, with volumes down 21%. Some of the former Argentine share migrated to Colombia (14%), Chile (11%), and Peru (6%). In all three cases, the increase in exported vehicles exceeded 50%.

SÃO PAULO LOST LEAD

In relation to taxes, Anfavea dedicated part of presenting results to vehicle registrations by state. For the first time, São Paulo is no longer the state with the highest sales volume.

In 2021, 456,607 vehicles were sold in Minas Gerais, compared to 453,637 in São Paulo. For Anfavea, this result is due to the higher ICMS (Goods and Services Movement Tax) levied in São Paulo.

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