The new year has begun strong – and way above even the most optimistic forecasts for Brazil’s auto industry.
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The domestic market grew 41% to 215,000 units registered. Manufacturers association Anfavea reckoned the result was primarily seasonal effect (January is summer and holiday time down here), but it was nonetheless the second consecutive record January. Playing cautious, the industry group said it was too early to review its 17% growth forecast for 2008.
Total production (vehicles shipped CBU and in CKD kit form) rose 24%. Imports rose 56%. The only negative was a 19% reduction in output of knocked-down assembly kits, reflecting import policy changes in Venezuela, the Brazil auto industry’s fourth largest export market.
Foreign sales reached $1bn, 27% up, a clear indication that importers have accepted recent price rises in US dollars for Brazilian products.
Local analysts polled by just-auto could not say why sales surged so much last month. They agreed broadly that the current strength of the Brazilian economy, seemingly little affected by the American sub-prime mortgage credit crisis, was the main reason.
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By GlobalDataThe economy here continues at full steam and, in spite of falling exports, unemployment continues to fall.
Last month the automotive industry alone hired 1,200 new workers – it now directly employs 121,000.
Fernando Calmon
