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Manufacturers reduce parts purchase

Sales drop in July led to a 2% fall in OEM businesses over the year

By Alzira Rodrigues |  Translated by Jorge Meditsch

Accounted for 60% of the Brazilian autoparts industry revenue, national manufacturers reduced purchases in July, reversing this year’s growing trend.

Until July, there was a slight 0.6% growth in OEM businesses, and now, after seven months, automotive components registered a 2% decline in revenue from vehicle manufacturers. The segment growth overcame 15% in the first quarter but has fallen since then.

Sindipeças’ conjuncture research, updated this week on the organization’s website, shows that the sector revenue, including all its areas, fell by 2.8% in July from June and 9.1% compared to the same month in 2022. Nevertheless, the autoparts industry’s total revenue still shows a 2% growth year-to-date.

Sindipeças’ report stresses that the weak manufacturers’ performance was decisive for last month’s deceleration: “As the OEM share accounts for more than 60% of the autoparts industry revenue, the chain performance depends strictly on what happens to vehicle manufacturers”.

The aftermarket maintained the best performance among the main distribution channels, growing 5% over July and 21% year-to-date.

Exports were also positive, growing by 6% in dollars and 7% in reais year-to-date.

Production capacity use fell by 1% from June to July to 70%, aligned with the sector’s performance and the reduced sales for manufacturers.

The autoparts industry reduced its workforce by 0.7% in July but registered a 3.4% increase in the first seven months. The growth reached 4% in the last 12 months.


Photo: Stellantis

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