May 8, 2024 – The Brazilian automotive market continues to show signs of robust recovery. Vehicle production in April reached 222.1 thousand units, the best result since August 2023, when sales were boosted by Provisional Measure 1,175, a federal government discount program.
In 2023, production surpassed the 220,000 units mark on only three occasions. With the jump recorded in April 2024, accumulated production in the first four months of the year reached 760.1 thousand units, representing an increase of 6.3% compared to the same period of the previous year, as reported by the National Association of Manufacturers of Motor Vehicles (ANFAVEA).
Compared to March 2024, vehicle production rose 13.5%, while the increase was 24.2% compared to April 2023. Domestic sales also stood out, reaching 220.8 thousand units in April, which represents growth of 17.6% compared to the previous month and 37.4% compared to April last year. In 2024, 735 thousand units have already been sold, 16.3% more than in the first four months of 2023.
However, vehicle exports showed an opposite trend. The 27.3 thousand units exported in April represent a drop of 16.4% compared to March. In the year to date, the export volume of 109.6 thousand units is 26% lower than in the first four months of 2023. Ibama’s standard operation, which has delayed the release of environmental licenses for imported vehicles, has negatively impacted logistics and exports.
Challenges and Perspectives for the Automotive Sector in 2024
“The month of April was quite encouraging, especially due to the increase in production, which begins to reflect the heating of the domestic market, despite the high presence of imported products. However, we have some warning points ahead, such as the slowdown in the fall interest rates and the effects of calamities in Rio Grande do Sul, which are already affecting vehicle factories, agricultural machinery and essential components throughout the automotive chain”, stated the President of ANFAVEA, Márcio de Lima Leite.
Source ANFAVEA https://anfavea.com.br/site/wpcontent/uploads/2024/05/Release_Maio24.pdf
