Brazil’s Auto Sales, Production Fall in September

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The FINANCIAL — New-vehicles sales and production in Brazil declined in September amid the country’s sluggish economy, prompting the national auto makers’ association to reduce its sales and production forecast for this year, according to Nasdaq.

Sales of cars, light vehicles, trucks and buses totaled 200,077 in September, down 32.5% from a year earlier, auto makers association Anfavea said on October 6. In the January-September period sales dropped 22.7% to 1.95 million units.

Output fell 42.1% to 174,240 units in September from the year-earlier period. So far this year, vehicle production totaled 1.9 million units, down 20.1% versus the same period of 2014.

Anfavea cut its estimates for the third time so far this year. It said it now expects a decline in sales of 27.4% this year, compared with its previous outlook of a drop of 20.6%. It expects vehicle production to fall 23.2%, versus its previous projection of a 17.8% decline.

Meanwhile, exports by value fell 10.8% in the first nine months to $7.95 billion. Exports declined 9.7% in September from a year earlier to $834 million.

Economists say a combination of weak economic growth, high inflation and rising interest rates is hurting consumer confidence, especially toward big-ticket items.

Brazil’s economy is expected to contract 2.85% this year, according to economists surveyed by the country’s central bank.

Falling consumer demand has forced many auto makers in Brazil to lay off employees, and implement voluntary severance programs and mandatory vacations.

The largest auto makers in Brazil by sales are Fiat Chrysler Automobiles NV, General Motors Co., Volkswagen AG and Ford Motor Co..

 

 

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