Affected by the spread of the coronavirus, automotive industry production plummeted 99% in April.
Production in April was only 1.800 cars, light commercial vehicles, trucks, and buses. The industry has the capacity to produce approximately 5 million vehicles per year in Brazil.
Reuters The Brazilian automotive industry saw a 99% drop in production in April compared to March, impacted by quarantine measures adopted by states and municipalities in an effort to contain the spread of the coronavirus epidemic.
Last month's production totaled only 1.800 cars, light commercial vehicles, trucks, and buses. The industry has the capacity to produce approximately 5 million vehicles per year in Brazil.
Meanwhile, sales of new vehicles plummeted 66% in April compared to March, to 55,7 units, the industry association Anfavea reported on Friday.
As a result, automakers ended last month with enough inventory for four months of sales. "It's only not worse because we stopped production to preserve cash," said the president of Anfavea, Luiz Carlos Moraes, in a presentation broadcast online.
The executive stated that the crisis also impacted the car rental sector, one of the automotive industry's main clients. "Due to the crisis, approximately 160 cars were returned by ride-hailing drivers to rental companies because of the drop in the number of rides," said Moraes.