Exports of vehicles from Brazil rose in July, despite the high value of the Brazil’s currency, the real, which has been slowing exports so far this year.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
A total of 83,406 vehicles were exported in July 2007 compared with 78,149 a year ago. The figure includes some completely knocked-down (CKD) kit exports but all of the growth has been in exports of completely built-up vehicles (CBUs).
During the first seven months of the year exports have fallen by 8% from 500,000 units to 460,000 units.
Around 65% of Brazilian exports go to countries with which Brazil has bilateral trade agreements, in particular, Mexico and Argentina. The Argentine market is growing strongly at the moment but the Mexican market is relatively flat.
Officially the Brazilian automotive industry trade association, ANFAVEA, is playing down the growth, but according to Sao Paolo based analysts, Autodata, this may be due to the fact that it has been lobbying the government for support to help improve the Brazilian automotive industry’s competitiveness overseas, and to talk about a recovery at the moment could jeopardise any forthcoming incentives.
Overall ANFAVEA is forecasting automotive exports (includuing components) to value $12bn this year, roughly the same as last year. During the first seven months of the year exports totaled $7.1bn, a 3.1% increase over a year ago.
