Brazil on Target to Produce Record 2.4 Million Vehicles This Year

Vehicle production in Brazil this year (January to September) has reached 1,834,861, a new record, up 12.6% over the same period last year.

During the same period, vehicle exports rose 38.7% in value, reaching US$ 8.3 billion (compared to US$ 6 billion in 2004).

According to the president of the automaker association (Anfavea), Rogelio Golfarb, the target for the year is to produce a total of 2.4 million units, another record, up 11% over 2004.

Automobiles with engines that can use more than one type of fuel are taking over from automobiles with gasoline-powered engines. In July, flex-fuel automobiles accounted for 58% of the 138.7 thousand cars sold in Brazil.

During the first half of the year, 381.16 thousand flex-fuel vehicles were sold, more than in the entire year of 2004. They represented 42% of the total number of automobiles licensed in Brazil in the January-June period.

Gasoline-powered cars, which accounted for 68.3% of total sales in July, 2004, saw their market share reduced to 35.6% in July of this year. They represented 51% of overall sales in the first half of the year.

According to Golfarb, production is accompanying the growth of sales in this segment. Last year only 20.2% of the country’s total production of 1.57 million automobiles had flex-fuel engines. Most of the production (66.3%) corresponded to gasoline-powered cars.

ABr