São Paulo – Brazilian motor vehicle production was up 8.8% in July as against June 2012, and reached 297,800 units. In comparison with July of last year, however, production was down 3.6%, according to figures issued this Monday (6th) by the National Association of Motor Vehicle Manufacturers (Anfavea).
Year-to-date as of July, 1.85 million motor vehicles were made, down 8.5% from the same period of 2011. Still, Anfavea is expecting a 2% increase in production in the whole of 2012.
The number of new motor vehicles licensed in Brazil was up 18.9% in July 2012 from July 2011, and reached 364,200 units. According to the Anfavea president Cledorvino Belini, all-time highs are expected in August both in output and sales of new motor vehicles.
The industry is currently enjoying a lowered Tax on Industrialized Goods (IPI, in the Portuguese acronym), which will remain in effect until August 31st. In spite of the end of the tax break, Anfavea forecasts a 4% increase in auto sales until the end of the year.
Belini believes that sales will be maintained after the lowered tax is over because the Brazilian economy will pick up. “In our understanding, it is crucial for Brazil to continue at its pace of economic expansion, which will lead to greater availability of credit. That, coupled with the lowered tax and GDP (Gross Domestic Product) growth across the entire economy, will be key to the industry’s growth,” he said.
Belini stated that the number of jobs in the industry has increased by 3,100 positions since the tax break was implemented. “The figure is in line with what was agreed with the government, it falls in the average range for the industry to keep on growing.”
*With information from the ANBA Newsroom. Translated by Gabriel Pomerancblum
