São Paulo – Brazilian exports of assembled vehicles dropped 2% in the first quarter of this year as against the same period in 2010, according to figures disclosed on Thursday (7) by the National Association of Vehicle Manufacturers (Anfavea), in São Paulo. There was also an 8.6%, reduction in comparison to March, individually, over the same month last year. In the quarter, shipments totalled 119,500 units and in March the shipments were 42,700 vehicles.
According to the president at Anfavea, Cledorvino Belini, the reduction is the reflex of the appreciation of the Brazilian real against the dollar. But, according to him, lack of sector competitiveness for exports is also lacking. The institution should present, still this month, a study to the federal government of Brazil calling for a series of measures to make the sector more competitive, so that it may return to selling abroad. The study is being concluded.
The president at Anfavea showed himself concerned with the numbers presented by the auto sector in the quarter. "The closing figures are already raising red flags. The sector is growing, but no more than the vigour of last year," said Belini. There was, in the first three months of this year, a great increase in vehicle imports. Imports, in the period, reached 182,000 vehicles, growth of 28% over the same period in 2010, when Brazil imported 142,000 vehicles.
The licensing of new vehicles in the quarter rose 4.7% in the country. But the figures include both national and imported vehicles. While the licensing of imported vehicles rose 28.5%, that of nationally produced vehicles dropped 0.5%. In total, 825,200 vehicles were licensed. Brazilian assembled vehicles, including light vehicles, lorries and buses, totalled 825,800 units from January to March, with expansion of 4.9% over the same period in 2010. But in March, with 294,000 units, production dropped 7%.
The performance of the CKD, in turn, was much better. Exports of disassembled vehicles reached 76,100 in the first quarter of the year, with growth of 54.7% over the same months in 2010. Brazilian production grew 55.2%, to 76,300 units.
In the general evaluation of the sector performance, Belini said that the measures for credit retraction, taken by the government as a measure to contain inflation, affected the growth of the car industry. He admitted that the situation for the sector is complicated, but defended floating exchange rates and the government’s work to contain inflation. "What is most important is inflation; we will, little by little, try to attract inflation to the centre of the target. That should reduce interest rates and increase investment and consumption," said the president at Anfavea.
*Translated by Mark Ament
