November was best month for auto industry

Dec, 09, 2020 Posted by Ruth Hollard

Week 202051

A survey by ANFAVEA, the national association of automotive vehicle manufacturers, pointed out that the month of November maintained the upward trend in the auto industry that began in the second half of 2020, presenting the best figures for the sector in the year. Exports and production came to surpass the levels of November 2019, but the domestic market still decreased by 7.1% compared to last year.

Production continues to be impacted by sanitary protocols in factories and also by the lack of components and inputs. 238,200 vehicles were produced in November, a growth of only 0.7% over October, which will not cover the increase in demand. This number is 4.7% higher than in November 2019, but at that time there were 330,000 vehicles in inventory. Today, there are less than 120,000 vehicles stocked in factories and on the network, enough to sustain just 16 days of sales. Year-to-date, the production of 1,804,759 units is 35% lower than last year.

The positive surprise was the 44,007 cars exported in November, the best result since August 2018. This increase is justified by the shipments impounded over the last few months, due to the pandemic stage in our neighboring countries, especially in Argentina. And also because of the hastening of shipments for the end of the year. The total of 285,925 units exported is still 28.4% lower than in 2019, which had already been a year of strong decline.

The domestic market closed with 225,010 licensed units, an increase of 4.6% over the previous month, a decrease of 7.1% over last November. During the year, 1,814,470 vehicles were licensed, 28.1% less than in the first 11 months of 2019. Separately, the truck sector maintains better results than those of automobiles and buses. Agricultural and road machinery saw a slight increase in production and exports in November, compared to October, despite a slight drop in sales.

“The strong November numbers give some hope for a better 2021, as long as the pandemic is controlled by vaccines, and the business environment in the country can be stimulated by public debt control measures and structural reforms that allow us to be competitive ”, said the President of Anfavea, Luiz Carlos Moraes. “But before that, we will have to overcome some immediate challenges in our sector and in the country, such as the increase in covid-19 cases, the risk of paralysis due to lack of auto parts, and the pressure of costs related to foreign exchange and inputs. All of this has been hampering a faster resumption of the industry”, he stressed.

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