Brazilian vehicle registrations are continuing their upward trajectory. In the year to the end of July 1.3m vehicles had been sold, an increase of 26.6% compared to a year earlier.

July was a particularly strong month with registrations up over 30% to 217,000 vehicles from 166,000 a year earlier.

Auto trade group ANFAVEA is forecasting that 2.35m vehicles will be sold in the full year but the current trend would suggest that this level may be exceeded.

Of the vehicles sold in July, 175,000 were passenger cars (+30.1%), 31,000 were light commercial vehicles (+33.1%) and 11,000 were trucks and buses (+41%).

As a result of the strong market, imports have risen this year. Import penetration was at its highest in January at 11.8%, and the figure has fluctuated at a slightly lower level since then. In July, 9.5% of new vehicles registered were imported vehicles, according to data from Renavam/Denatran. In the first seven months 9.8% of new registrations were imports.

Vehicle production was up 24.9% in July to 254,000 units. 238,000 vehicles produced were passenger cars (+24.9%), 35,000 were light trucks (+10%) and 15,000 trucks and buses (+26%).

In July, production totaled 268,000 units, an increase of 8.6% when compared to the same month in 2006. This is the month's best performance in the industry's history. Still, there is a lack of vehicles at the dealers.
In the first seven months of the year production was up 11.2% to 1.55m vehicles.

According to ANFAVEA, daily production in July averaged 12,200 units, up 15% compared to last July. Daily production has been accelerating during the year. Between January and June average daily production was 11,200 units. Waiting lists are reportedly long, suggesting that extra shifts may be added. To date most of the production increase has been met within existing shifts. Vehicle manufacturers remain cautious about adding a permanent third shift for fear of another unexpected downturn.