São Paulo – The president of the National Association of Vehicle Manufacturers (Anfavea), Cledorvino Belini, informed today (6th) that one of the auto industry’s targets for 2011 is to increase the export volume back to the US$ 13.9 billion sold in 2008. Last year, foreign sales have grown by 54.7% compared with 2009, but still remained below the US$ 12.8 billion recorded in 2008. The Anfavea’s initial projection points to an increase of 1.6% this year.
"Everyone is seeking their market niche, and the issue surely depends on the exchange raet. We hope that the decline of the dollar [against the real, the Brazilian currency] will stop," said Belini. According to him, automakers operating in Brazil account for 23% of the industrial Gross Domestic Product (GDP) of the country, which currently ranks fourth in the global sales ranking, after China, the United States and Japan. The country ranks sixth in production.
The director claimed that in addition to the low dollar-to-real ratio, Brazilian exports need increased competitiveness. Thus, from 2010 until 2012, US$ 11.2 billion should be invested.
According to the Anfavea’s projections, domestic sales should grow by 5% this year, to reach 3.69 million units sold. The output, in turn, should grow by a lower rate, of 1.1%, to reach 3.68 million. The association estimates that the share of imported vehicles in the Brazilian market should rise from 18.8% to 22% by the end of the year.
Cledorvino Belini expressed optimism concerning the government’s performance under president Dilma Rousseff. "We are confident that the new government is going to enable a goof economic development, with inflation control, keeping the inflation and the interest rates balanced."
As for the effects of the raised compulsory deposit, adopted by the monetary authority last month to curb credit to consumers, Belini stated that the measure has not affected vehicle sales. "The market remains dynamic and robust." He, however, admitted to the possibility of a slowdown early this year, highlighting that over the last ten years, there has traditionally been a decline of around 27% in business during this time of year.
*Translated by Gabriel Pomerancblum
