Brazil Auto Parts Industry Sees 18% Export Decline, Trade Deficit Widens

With imports up 5.6%, driven primarily by increased purchases from China, and exports down 18% in the year through July, the auto parts industry in Brazil reported a negative trade balance this year.

The sector’s exports totaled $4.4 billion in the first seven months of the year, compared to $5.3 billion during the same period in 2023. July saw a 16.9% increase ($648 million) compared to June ($554.5 million), which can be partially attributed to the higher number of business days last month.

Regarding the year-to-date figures, Sindipeças suggests that the recovery of automotive production and sales in the domestic market (5.3% and 13.2% through July, respectively) and the challenges faced by key markets for Brazilian industry, such as Argentina, “seem to explain what has been happening with the sector’s external sales.”

The following chart shows Brazil’s auto part exports from January 2022 to June 2024, according to information derived from DataLiner, Datamar’s leading maritime intelligence service.

Exports of Auto Parts from Brazil | Jan 2022 – Jun 2024 | TEUs

Source: DataLiner (click here to request a demo)

In contrast, imports associated with the auto parts industry in Brazil reached $11.8 billion by July, compared to $11.2 billion in the same period last year. Compared to June, when foreign purchases totaled $1.6 billion, the growth is 17.8%, which can also be attributed to July’s 23 business days versus 20 in the previous month.

“The continued decline in exports and the persistent increase in imports have expanded the trade deficit to $7.4 billion through July, a 27.3% increase compared to the same period last year ($5.8 billion),” highlighted Sindipeças in its monthly report on the topic, published on the group’s website.

Source: Autoindústria

Click here to access the original news text: https://www.autoindustria.com.br/2024/08/15/exportacoes-de-pecas-caem-18-e-deficit-comercial-cresce-27/

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