After a dreadful Q1 2022, the Brazilian automakers failed to bounce back in March, due to the continuing global shortage of semiconductors (which causes production delays and forces plants to shut down), as well as waning demand held down by rising inflation.
Data from manufacturers show that fewer than 185,000 vehicles were manufactured last month – the lowest in March since 2003.
Sales performance was even worse than production numbers, with 22 percent fewer deliveries than in March 2021. A combination of high fuel prices, supply chain disruptions, and an unfavorable exchange rate has made it a bad time to be a Brazilian driver.
Automotive inflation – that is, inflation in items involved in the acquisition and maintenance of vehicles in the country – is at a 21-year high and shows no signs of abating.