Hit by semiconductor crisis, Brazilian auto industry struggles to accelerate

Despite healthy demand, especially for heavy commercial vehicles, supply problems are holding the sector back

auto industry brazil semiconductor
New cars parked at a car dealership storage lot. Photo: Nelson Antoine/Shutterstock

The Brazilian auto industry has been facing turbulent conditions for a while now, but the pandemic, plus a global crisis in semiconductor production, further reduced expectations of recovery. Even though the data show that the sector is performing better than last year — when Covid-19 took everyone by surprise and further weakened an already struggling economy and increased unemployment to record levels — there is still a long way to go for the industry to return to pre-pandemic levels. 

According to the National Association of Automotive Vehicle Manufacturers (Anfavea), the auto sector is facing difficulties that are more due...

Access all of The Brazilian Report

Less expensive than a coffee!

Enjoy your 30-day limited-time offer for US$ 0.25 a week