Brazilian vehicle production drops in February

The Brazilian automotive sector suffered a drop in both vehicle production and sales in February this year, according to the National Association of Motor Vehicle Manufacturers (Anfavea). For the month, 165,900 units were produced — a 15.8-percent year-on-year decline — while sales were down 22.8 percent compared to the same month last year.

If we look at the first two months of the year combined, production fell 21.7 percent from the same period in 2021, and licensing is down 24.4 percent.

When looking at trucks, which had been showing positive results in recent months, production dropped 3.5 percent in February to 11,400 units. Sales, meanwhile, saw a modest rise of 2.1 percent.

While there is still no concrete data on the impacts caused by the war in Ukraine, Anfavea says the price of commodities such as oil, steel, aluminum, and copper are likely to influence sales and production performance from here on out. In addition, the lack of fertilizers imported from Russia could also affect the agribusiness sector, which is an important buyer for automakers.

In addition, the global semiconductor crisis should also be taken into account — having already been a limiting factor for the sector’s production — as should problems in the global logistics chain, a problem brought about by the pandemic.

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