Car industry recovers production, export levels

Domestic demand is down 7.1 percent from 2019

Published on 08/12/2020 - 13:58 By Letycia Bond - São Paulo

Last month, Brazil’s auto industry regained the production and export levels from November 2019. The amount of licensed units, however, was below what had been previously observed, as per a report published Monday (Dec. 7) by the country’s National Association of Auto Vehicles (Anfavea).

The report shows that the demand in the domestic market slipped 7.1 percent from 2019. Units totaled 225,010, compared to 242 thousand. In the year, 1,814,470 cars were given a license plate.

Unlike sales, production showed a slight increase, 0.7 percent—a total of 238.2 thousand motored vehicles. The volume is said to not have been enough to serve the market.

Year to date, output reached 1,804,759 units, 35 percent less than last year’s. In November, 11.5 thousand trucks, 1.7 thousand buses, and 5 thousand road and agricultural machines left the assembly plants.

Exports

During a press conference, Anfavea representatives also underscored export figures. In November, 44,007 units were sent overseas—the best performance since 2018. The growth is believed to have come about as a result of the amount retained in the last few months due to the COVID-19 pandemic. Over the course of the year, 285,925 units were exported, down 28.4 percent from 2019.

Anfavea head Luiz Carlos Moraes said that December’s output is something that cannot be easily predicted, and mentioned challenges facing the sector. The lack of raw materials, he said, is most alarming, as it may mean assembly plants may be forced to come to a halt.

“The risks of a standstill are very high.” “This is a really difficult challenge to handle.”

Employment

In November, job opportunities offered by the sector also deteriorated. From October to last month, the total number of posts went from 121.4 thousand to 120.8 thousand. Moraes went on to state that, in the period, 1,284 employees left their jobs as part of voluntary layoff program, or were let go after the termination of temporary contracts.

Translation: Fabrício Ferreira -  Edition: Graça Adjuto/Denise Griesinger

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