Vehicle production fell 10% in March, according to Anfavea.
Production of vehicles assembled in the country totaled 240.546 units in March, a 10% decrease compared to the same month of the previous year, according to data released by the National Association of Automotive Vehicle Manufacturers (Anfavea); compared to February, there was a 6,4% reduction.
By Fernanda Cruz – Reporter for Agência Brasil
Production of vehicles assembled in the country was 240.546 units in March, a 10% drop compared to the same month of the previous year, as announced today (4) by the National Association of Automotive Vehicle Manufacturers (Anfavea). Compared to February, there was a 6,4% reduction.
The president of Anfavea, Antonio Carlos Botelho Megale, said that three factors influenced the negative production result: the workers' strike, the flooding at the Mercedes-Benz factory, and the reduction in exports. In addition, March also had one less working day due to Carnival.
Megale defended the importance of maintaining good vehicle production rates, which are responsible for generating jobs and income. “A Central Bank report for the 2017-2018 period states that automakers are responsible for one-third of Brazil's industrial growth and a quarter of total GDP growth, demonstrating the sector's importance. We want production investments to remain in Brazil.”
Licensing
New car registrations increased by 0,9% in March compared to March 2018. Compared to February, the increase was 5,3%. In the accumulated figures since the beginning of the year, compared to the same period in 2018, there was an increase of 11,4%. The daily average of 11 units was the highest for a March since 2014.
Exports, however, continue to bring pessimistic figures for the sector, due to the economic crisis in Argentina, the main importer of Brazilian vehicles. There was a 42,2% drop in March, compared to March 2018. The accumulated reduction was 42%. Compared to February, the contraction was 3,7%. "We are going to have an absolutely compromised first semester, but we hope it will start to improve [later]," he said.
Argentina remains dominant in imports, accounting for 60% of the market share. Other countries, however, have stood out, such as Mexico, which was responsible for 13% of imports of Brazilian production. Colombia grew from 3% last year to 10% this year.
Agribusiness
The sale of agricultural machinery showed optimistic results, with a 7% increase in March compared to the same month in 2018. Compared to February, there was a 31,6% increase. The accumulated increase was 23,5%. "The harvest is very good; it will be the second best harvest in history. We have sold the entire soybean harvest at very good prices with China; the sector is capitalized, with a high level of confidence," said Megale.