Vehicle production drops 19% in April, in a record year for paralyzed factories

The balance sheet presented by the National Association of Automotive Vehicle Manufacturers (Anfavea) also pointed out decline in registration volumes in April, partly explained by the 5 working days less compared to March. The 160.7 thousand units registered represented a decrease of 19.2% over the March volume, and an increase of 9.2% over the same month of last year. “Even with the credit difficulties and high interest rates that mainly affect retail sales, we have sold 633,000 units so far in 2023, 14% more than last year, when the crisis was only a lack of supply”, analyzed the President Márcio de Lima Leite.

For trucks, the situation is even more complex after the end of the three-month period in which factories can invoice vehicles produced in 2022 (models from the previous phase of Proconve). Sales fell 16.5% compared to the weak month of April 2022, confirming the challenges of introducing the eighth phase of the emission control program, which left national products in line with the most advanced global models, but with an inevitable increase of cost.

The president of Anfavea also pointed out that the daily average of vehicle sales in April was the best of the year, with 8.9 thousand units/day, but that a good part of this growth is due to repressed demand from rental companies. In the month, 50% of registrations for cars and light commercial vehicles were through Direct Sales, a channel that includes rental companies, legal entities, taxi drivers, corporate fleets, PCD, government, rural producers, etc.

April was also a month of drop for exports, reflecting the decline in the main markets to which Brazil ships its products: Argentina -13%, Mexico -18%, Colombia -20% and Chile -48%. In addition, there was an intense restriction of imports in Argentina due to exchange rate issues during the first three weeks of the month. Total exports were 34,000 units, down 24% over March and over April 2022.