Vehicle production increases 3.7% in the first half

Vehicle production grew 3.7% in the first six months of 2023, reaching 1.13 million units compared to a total of 1.09 million produced in the same period of the previous year. According to figures released this Friday (7) by the National Association of Automotive Vehicle Manufacturers (Anfavea), in June, production was 189.2 thousand vehicles, a drop of 17% in comparison with May and 7 .1% compared to the same period last year.

“Due to the high inventory of manufacturers and automakers at the end of May, there was a drop in production in June. So, within the strategy and conditions of the manufacturers, there was a reduction in production to balance stocks”, said the president of Anfavea, Márcio de Lima Leite.

According to him, this also occurred due to the drop in exports, a reflection of the economic situation in Chile and Colombia. Anfavea data show that exports fell by 7.7% from January to June 2023, with 227.2 thousand units sold in the foreign market. In the same period last year, this number was 246.3 thousand. In June, exports reached 36.6 thousand units. Compared to June of the previous year, there was a decrease of 22.6% and, in relation to May of this year, a reduction of 17.4%, according to the monthly balance of Anfavea.

“Unfortunately the market in Chile and Colombia, which are very important for the automotive sector, suffered from the issue of the local economy and that is why we had a reduction in the volume of our exports. But it is also a difficult moment for this comparison because the year 2022 was a spectacular year in terms of exports”, analyzed Leite.

The monthly balance also recorded that sales of new vehicles increased by 8.8% in the first half, with 998.6 thousand units licensed against 918.0 thousand in the same period of the previous year. In June, units sold reached 189.5 thousand, which represents an increase of 7.4% compared to May and 6.4% compared to June 2022.

In part, Leite attributes the increase in sales to Provisional Measure 1,175/23 (edited to grant discounts for the purchase of new cars), with the concentration mainly on individuals, which reveals a very important point, since the program was aimed at price reduction and the possibility for the consumer to have access to a new vehicle. “We estimate that, of the R$ 800 million released by the government for light vehicles, R$ 710 million had already been invested by the end of the month, resulting in discounts for around 150,000 units. However, only 54,000 of them were licensed in June,” he said.

In a brief intervention at Anfavea’s presentation on the balance sheet, the Vice President of the Republic, Geraldo Alckmin, who is also Minister of Development, Industry, Commerce and Services, stated that the tax incentive program for light vehicles was a success and counted on the social sensitivity of president Luiz Inácio Lula da Silva, in relation to employment and the importance of the industry at the moment.

“We have an idleness of almost 50% and that could lead to a job loss. Therefore, this stimulus was transitory, but necessary at that moment. We had great success, as the first R$500 million in tax credits were for individuals only. Afterwards, this value was extended to R$ 800 million and then for individuals and companies. Just for individuals, in the first three weeks, there were 95 thousand vehicles”, highlighted Alckmin.