Vehicle sales up 9.9% year-on-year, says Anfavea

Fall of 0.3% compared to July is punctual because of one less business day, says entity

Sales of cars and light commercial vehicles grew 9.9% between January and August this year compared to the same period last year. Last month, 243,000 units were sold, down 0.3% from the previous month, which Anfavea, which brings together the industry’s manufacturers, considers normal since July had one less business day.
According to Luiz Carlos Moraes, president of the entity, the adjustment is due to the fact that “Many factories are preparing for major releases in the second half, but the sector as a whole has very favorable numbers especially for the year accumulated where more than 2 million vehicles have already been produced, ”he told R7. The data show that the automotive market had the best month of August in five years with a daily average of 11 thousand vehicles sold per day.

The truck and bus segment sold 9.4 thousand units in August, 5.5% more than in July and a 26.5% growth compared to the same month last year. Year-to-date sales already advanced 41.4%, which the entity considers a “robust” growth after five years of successive crisis.

Falling Exports

Despite the recovery of the domestic market, the Argentine crisis has brought down export numbers. In the auto segment in August, 36.7 thousand units were sold abroad, a 12.8% reduction compared to July and a year-on-year decrease of 37.9% in the volume of units sent to other countries.

In the auto segment in August, 36.7 thousand units were sold abroad

“Argentina remains a challenge for the national auto industry because although we have grown exports to countries like Colombia and Mexico they are significantly smaller in market terms compared to Argentina,” said Moraes.

Investments

The president of Anfavea also highlighted the progress of negotiations with the European Union and the projection of regressive taxes after the implementation of the agreement. In the end, he pondered: “We need to reduce Brazil’s cost for yesterday, make structural reforms, eliminate export barriers, bureaucracies, taxes and inefficiency in logistics and infrastructure.”

Anfavea’s president also highlighted the progress of negotiations with the European Union and the projection of regressive taxes after the implementation of the agreement.

According to the executive, automakers are “doing their part” by investing in new products updated with what exists in developed countries. “The industries already follow the 4.0 industry concept, we are aligned with the international production standard”, he highlighted.

Moraes also projects that lowering the Selic rate may improve longer-term, longer-term direct consumer credit (CDC) financing rates, in addition to the release of part of the FGTS, may improve the domestic scenario. “There is moderate optimism as we are talking about a low level like 2014 but there are good numbers in the domestic market, in the truck and bus segment, and points of attention such as the conflict between the United States and China and the exchange control in Argentina” , finished.