Car sales grow in Brazil and already surpass those of Germany

The regional automotive market is showing signs of recovery, after a period of low activity.

In Argentina, growth in sales of cars starting in July and is compensating for the drop in the first semester as a result of the impact on demand of the December devaluation.

Chile is another market that has been declining, but for four months it has been on a path of growth in the patenting.

Within this scenario, Brazil is the country that is recovering the strongest. Beyond the internal importance that this trend has for the main partner of the Mercosur, The important fact is the impact it has on the region, especially for Argentina, since most of its exports are sent to that destination.

Car sales in Brazil reached the best level in the last ten years in October. According to data published by the National Association of Motor Vehicle Manufacturers (Anfavea), which represents automobile manufacturers, last month 264,900 units were patented, including cars, light commercial vehicles, trucks and buses.

This implies un increase of 21.6% compared to the same month last year and 12.1% compared to September.

“We haven’t had such a high sales volume since December 2014. With this sales volume in October, we surpassed Germany in the period and Brazil became the fifth country in sales. But production still remains below registrations due to the growth of imports,” he explained. Márcio de Lima Leite, president of Anfavea.

Germany, Europe’s largest economy, patented 232,000 units last month.

Regarding production. Last month, 249,000 vehicles left Brazilian factories, an increase of 8.3% compared to September and 24.7% compared to the same period in 2023.

The manager of the business entity highlighted that exports have been growing in the last three months, with improvements in markets such as Colombia, Chile, Argentina, Ecuador and Mexico, the main destinations for automobiles manufactured in Brazil.

According to Anfavea statistics, exports reached 44,000 units in October, an increase of 4.6% compared to September.

In any case, among companies based in Brazil there is concern about the increase in imports which continue to grow at a record level, compared to the last ten years. In October, imports totaled 47 thousand units, four thousand more than in September, which means a growth of 10.4%.

During the year, for every two imported vehicles (outside Mercosur) sold in Brazil, one is of Chinese origin – highlighted the president of Anfavea.

Vehicles imported from China totaled sales of 10,700 units in October, but it is estimated that there is a stock of 72,900 units.

From January to October 2023, sales of vehicles from China in Brazil totaled 26,052 units. This year, in the same period, there are already 93,621, an increase of 259%, according to the newspaper O Globo.

This means that China currently represents 25% of imported sales, compared to a share of 10% in the same period last year.

Car manufacturers argue that Lula da Silva’s government should propose an increase in the import tariff rate for imported cars to encourage the development of new technologies here.

The rate will be 35% in two years and is currently 18% since July. Chinese automakers have brought forward the import of vehicles to avoid the increase in this pace, which is gradual. Car manufacturers based in the country will invest 130 billion reais, until 2030, to develop hybrid and electric vehicles here, the newspaper explains.