Automobile industry shows signs of recovery in July

Aug, 07, 2020 Posted by Sylvia Schandert

Week 202032

Numbers released by the National Association of Automotive Vehicle Manufacturers (Anfavea) this Friday, July 7, points out that the first month of the second semester presented more positive numbers for the automotive sector, in comparison with the fall of the previous three months.  In July, production reached 170,300 units, an increase of 73% over June, but still 36.2% lower than the same month last year. Despite the increase, it was still the worst July since 2003.

Vehicle license plates (174,500) grew 31.4% over June, but fell 28.4% compared to July 2019, the worst volume since 2006. In the same comparisons, exports rose 49.7% month-on-month, but decreased 30,8% year-on-year. In the accumulated result for the year, the most dramatic fall was in production (48.3%), the lowest of this century, followed by exports (43.7%) and licensing (36.6%).

“In addition to a greater number of working days, July was a month in which the automakers and dealerships made a great effort to recover the cash handicapped by the long quarantine. But the pace of daily sales was only 20% higher than in June, which required caution in analyzing how the recovery will be in the second half. We still have a pandemic that has not stopped, with increasing cases of Covid-19 in important states of the country. It is as if we were on a winding road and with heavy fog, with great difficulty in seeing the horizon clearly ”, says Luiz Carlos Moraes, President of Anfavea.

As has been happening since the beginning of the pandemic in Brazil, the truck and machinery segments are able to maintain sales and production rhythm above light vehicles, although this does not imply any growth on the previous year. The only positive indicator in the accumulated result for the year is the sales of agricultural and road machinery which are 1.3% higher than in 2019.


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