Brazil’s auto production down 3.6% in March

The production of cars and trucks in Brazil was down 3.6% in March against the previous month. The number of vehicles manufactured dropped to 271.2 thousand in March from 281.5 thousand in February. The reduction was reported for all segments in the automobile industry, said National Association of Vehicle Manufacturers (“Anfavea”) on Friday (Apr. 4). Compared to March 2013, this was a sharper decrease: 17.6%.

Sales also fell from 259.3 thousand units commercialized in February to 240.8 thousand in March – a 7.6% decline. In a comparison with the same month the previous year, the drop totaled 15.2%. In the first three months of the year, 812.8 thousand units were sold, 2.1% lower than the rate reported for the same period in 2013.

According to Anfavea President Luiz Moan Yabiku Junior, one of the reasons for these outcomes is the rise in prices, due to a higher Tax on Industrialized Products and the mandatory installation of air bags and anti-lock braking system (ABS) in light vehicles. “Lastly, we’ve also had two fewer business days because of Carnival,” Yabiku added.

The data also reveal a reduction in exports, which have declined from 28.8 thousand units sold in February to 23.4 thousand in March – a fall of 18,8%. Compared to figures from March 2013, this drop in foreign sales stands at 46.2%.

Translated by Fabrício Ferreira