Hike in exports stimulates auto industry

International sales have warmed up and enabled Brazilian car plants to expand their output. A total 234.7 thousand vehicles were produced in March—up 17.1% from February, and up 18.1% from the same period last year. In the quarter ending in March, 491.7 thousand units were manufactured, 24% more than the same period in 2016.

The figures were made public today (Apr. 6) by the National Association for Auto Manufacturers (Anfavea). Association head Antônio Megale ascribed the increase in domestic sales to the larger number of business days in March, and also the demand from companies renewing their fleet.

The performance, however, was driven chiefly by exports, with an increase of 51.5% ($3.34 billion) in the first quarter, compared to January – March 2016. From March last year, the financial volume of exports went up 57.4%, and 11.3% from February. The number of units traded overseas also increased—3.3% from February—and totaled 68.4 thousand. In the same month in 2016, the number of vehicles sold to other countries expanded 64.6%.

In the domestic market, sales also surpassed their February counterpart, with an increase of 39.4% and a total of 189.1 units traded. Also reported was an increase in 5.5% against March last year. In the first quarter, however, sales slid 1.9%.

In Megale's opinion, in order for the auto industry to recover growth more significantly, investments in infrastructure must be further encouraged.

Employment

The number of workers in the sector fell 6% in the last 12 months, and reached 121.1 thousand in March. When asked about the reduction in a moment of increased sales, Megale said companies have invested more in production.

Translated by Fabrício Ferreira