Roughly 405,600 vehicles were sold in Brazil between January and March 2022, 23-percent down on the same period last year, according to sectoral data. It was the worst Q1 performance since 2005. Sales were mainly weighed down by a weak month in March – the weakest in 18 years – with fewer than 147,000 vehicles sold.
A lack of electronic components continues to be the main factor behind the sector’s underperformance. High interest rates – up from 2 to 11.75 percent over the past year – have also acted as a deterrent for sales, as consumers balk at higher loan fees.
Automotive inflation – or rather, the inflation in items involved in the acquisition and maintenance of vehicles in the country – rose at almost twice the official rate. In the 12-month period to October, automotive inflation hit 18.46 percent, the highest level for this category since 2000 – when it hit 20.88 percent.