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Brazil’s Motor Vehicle Production Falls 40%, But Industry Is Pleased

The motor vehicle production in Brazil dropped 7.9% in October, in comparison to September. Last month’s production totaled 191,326 units, whereas September’s was 207,692 units.

When compared to October of last year, there was a 39.6% production decrease, according to the sector’s monthly balance, announced Friday, November 4, by the National Association of Automobile Manufactures (ANFAVEA).

According to the entity’s president, Rogélio Golfarb, production reduction was already expected.

"These are what we call negative tendencies. On the other hand, we do have some tendencies that may be positive for next year. One of them is the interest rate reduction. Depending on how fast it gets to the consumer, we may offset this problem," said Golfarb.

All series of lightweight vehicles presented similar lows varying from 7.4 to 7.7%. Truck production was the most affected, with a decrease of 11.8% (10,138 units produced in October versus 11,492 in September).

In comparison to October of last year, this reduction was of 8.9%. The production of buses also dropped in October; there were 2,662 units against 2,846 in September. Nevertheless, according to Golfarb, Anfavea evaluates that the market is doing well.

Exports of commercial and passenger vehicles dropped 16.6% from September to October; however, the sector accumulates a 29.3% increase in exports this year, in comparison to the same period last year.

In October, Brazil exported 61,792 vehicles of different types, against 74,057 in September. When compared to October of 2004, the reduction was of 18.1%.

Agência Brasil

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