By Alzira Rodrigues | Translated by Jorge Meditsch

Vehicle production in September reached 207.8 thousand units, a volume 12.7% under August’s, when 238 thousand automobiles, light commercial vehicles, trucks and buses rolled out of the assembly lines. Nonetheless, there was a 19.3% advance over the same month last year (174 thousand units), granting a 6.3% expansion year-to-date.

According to data released by Anfavea this Friday, 10/7, from January through September 1.75 million vehicles were manufactured, compared to 1.65 million in the same period last year. Last month’s negative production and sales performance is attributed to the number of working days compared to August – respectively 21 and 23 days. Deliveries fell 7% to 194 thousand units, and exports plunged 39% with 28.5 thousand shipments.

Despite the September falls, Anfavea’s president, Márcio de Lima Leite, expressed optimism about the sector’s behavior. He highlighted the positive indicators regarding September 2021, including a 25.1% increase in internal sales and 19.3% in exportation.

He also made a point to show the quarterly performances, assuring that July/September was an important step toward the Brazilian automotive market recovery this year after a weak first trimester due to the lack of electronic components and a second quarter showing a beginning of improvement.

“In July, August and September, the automotive production reached a total of 665 thousand units, 11.6% over the previous trimester”, informed Leite. He also remembered that historically September does not repeat August’s good numbers and that last month the sector had its best daily sales performance in the year, with 9.2 thousand deliveries.

The executive admitted that credit restrictions are worrisome, reinforcing the information he released last month about a larger volume of cash sales and less financed sales. But he reassured this is an offer problem – still caused by the lack of semiconductors – and not a demand problem.

Anfavea’s president foresees a much better fourth quarter than the same period in 2021. To achieve internal sales of about 2,140,000 vehicles – which would mean a small growth over 2021 (2,120,000), it will be necessary to license 637 thousand vehicles from October to December.

“Last year, this volume was 542 thousand and, in 2020, 684 thousand, when the semiconductors crisis was not yet so severe as in the second semester of 2021. We believe it is viable to reach these 637 thousand units and zero the internal market fall persisting in the first nine months”, he concluded.

Photograph: Jeep

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