Vehicle production in Brazil falls 13.6% between January and April

RIO DE JANEIRO, BRAZIL – From January to April this year, 681,587 vehicles were produced in Brazil, down 13.6% from the same period in 2021. This is due to the crisis in parts supply, exacerbated by the war in Ukraine, the industry’s employers’ association announced Tuesday.

Automobile production reached 185,400 vehicles, light trucks, trucks, and buses in April, up 0.4% compared to March, although down 2.9% year-on-year, according to the National Association of Motor Vehicle Manufacturers (Anfavea).

The employers’ association’s president, Marcio de Lima Leite, said at a press conference that increasing production had become the most significant “challenge” for the sector, mainly because of shortages of inputs such as semiconductors.

“The sector has had to reinvent itself to avoid plant closures. In 2021 alone, we had to close 14 fabs due to the semiconductor shortage,” stressed De Lima, who was optimistic about the planned opening of 29 new semiconductor fabs worldwide between 2022 and 2023.

De Lima also highlighted the excellent performance of exports in the first four months of the year, especially to Chile, where there is still room for further growth.

Brazil, the largest vehicle manufacturer in Latin America, shipped 152,874 vehicles abroad in the first four months of 2022, 17.9% more than in the same period of 2021.

In April, employment in automotive factories remained stable compared to March, with 101,736 jobs, but decreased by 2.8% compared to the fourth month of 2021.

According to data released on May 3 by the National Association of Automobile Dealers (Fenabrave), sales of new vehicles in Brazil decreased by 15.9% in April compared to 2021. Although this figure is negative, it shows that automotive sales in Brazil are picking up.