Brazil Produces 1.89 Million Vehicles and Becomes World’s 6th Car Maker

A Volkswagen Gol made in Brazil The Brazilian auto industry has become, in the first half of this year, the sixth largest in the world in terms of units produced, exceeding France. According to a balance sheet published by the National Association of Vehicle Manufacturers (Anfavea), up to June, 1.89 million vehicles were produced in Brazil, 120,000 more than in France.

According to Anfavea, up to the end of last year, the Brazilian and French positions in the ranking were inverted. In 2007, France produced 3.02 million vehicles and Brazil, 2.97 million.

Japan, with 6.06 million units, China, with 5.2 million, the United States, with 4.89 million, Germany, with 3.31 million and Korea, with 2.08 million, headed the ranking. Spain follows right after France, with 1.55 million vehicles.

According to Anfavea president Jackson Schneider, the good economic phase of the country has been boosting vehicle sales and, thus, production. With more formal jobs, abundant credit and demand for vehicles, the tendency is for the number of vehicles produced by the Brazilian industry in the sector to grow further.

In July, for example, the number of vehicles produces and licensed in Brazil broke new records: 320,100 and 288,100 respectively.

Sales of vehicles in the Brazilian market grew 5.8% in the month of June when compared to the previous month. In July a total of 256,000 new cars were registered, as against 242,000 in May. In comparison with June last year, when 198,000 units were sold, the growth was 28.8%.

In the accumulated result for the year, the total reached 1,407,211 cars, 30% more than in the same period last year. The figures were disclosed on August 4 by the National Association of Vehicle Manufacturers (Anfavea). According to the organization, this is the best half in the historic series in terms of sales.

The Anfavea monthly balance sheet shows that vehicle production also broke records, having risen from 289,000 units in May to 303,000 units in June (4.8%). With regard to June last year, when 246,000 units were produced, the increase was 23%.

In the accumulated result for the first six months of the year, production totaled 1,680,976 units, against 1,385,488 (21.3%) last year.

Exports reached 66,000 units in June, expansion of 20.3% over May. When compared with June last year, the increase was 3.7%. In the accumulated result for the year, exports reached 366,000 units.

According to Anfavea president Jackson Schneider, sector growth should continue in the second half, although at slower rates, due to the level of production and consumption that the domestic market has reached.

"We have now reached production and consumption over 200,000 units, which shows that growth should remain, but at a lower rhythm than what has been taking place in recent years."

Schneider stated that this accommodation is extremely positive as it allows for more structured planning and long-term growth without leaps and bounds.

"It is a natural accommodation of the productive chain, which is complex and broad, so it is better to grow in the long run at a slower rhythm than in the short run and with great leaps," he said.

ABr

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