São Paulo – Brazilian auto industry exports fared well again in August, with revenue reaching USD 1.46 billion. The result is up 58.2% from August 2016 and 3.3% from July 2017, the National Motor Vehicle Manufacturers Association (Anfavea) said this Wednesday (6).
Year-to-date through August, automobile and agricultural machinery manufacturers in Brazil grossed USD 10.272 billion, up 53.2% from a year ago.
August saw roughly 66,600 units shipped abroad from Brazil, up 61.7% year-on-year and 1.6% in August from July. Year-to-date through August, the industry exported 506,000 vehicles, up 56.1%.
“This extraordinary growth attests to the companies’ efforts to seek out markets and the improvement of trade agreements with other countries. The industry has shown that it plays a very important role in production. Even as the domestic market recovers, we expect exports to remain at relevant levels,” Anfavea chairman Antonio Megale told Agência Brasil.
Domestic sales came out to 1.42 million units year-to-date through August, up 5.3% year-on-year. In August alone, roughly 216,500 vehicles were sold in Brazil, up 17.2% from July and 17.8% from August 2016.
Industry output was up 25.5% year-to-date to 1.75 million vehicles, and stood at approximately 260,200 units in August, up 45.7% year-on-year and 15.4% over July. It was the highest monthly output since November 2014.
Upward revision
As August results came in, Anfavea revised up its whole-year forecasts. Exports are seen reaching 745,000, up 43.4% from 2016, and up 705,000 units as per the previous projection, which would mean a 35.6% increase. The export revenue forecast changed from USD 13.9 billion to USD 15.1 billion.
The domestic sales forecast also changed up, going from 2.133 million vehicles, which would mean a 4% increase, to 2.2 million vehicles, which would entail a 7.3% increase. The output estimate changed from a 21.5% increase to 2.619 million units to a 25.2% one at 2.7 million vehicles made.
Megale said the new forecasts are proof that the industry is on track to a recovery, even though the 2016 numbers are a weak basis of comparison. “What we need now is economic stability so that confidence from consumers and investors can improve and economic activity starts picking up across the country,” a press release quoted him as saying.
*With information from Agência Brasil. Translated by Gabriel Pomerancblum
