The Brazilian National Automakers Association (Anfavea) reported this week that its members built 33.1 percent more vehicles last month than in May 2000, writes Rogério Louro Alves.

Brazilian vehicle makers turned out 199,889 units last month compared with the 150,200 produced in May 2000, the third-best result in the industry’s history.
May production was 19.3 percent ahead of April 2001 when 167,533 vehicles were produced.

Brazilian domestic sales also rose in May to 143,277 vehicles, 25.4 ahead of the 114,214 units sold in May 2000. May 2001 sales were up 5.7 percent compared with the 135,519 units sold in April.

Brazilian vehicle makers exported 41,728 vehicles last month, up 15.2 percent on the 36,216 units exported in the same month in 2000. May exports were up 14.3 percent on the 36,517 vehicles shipped from Brazil in April.

Anfavea is pleased with the May results because the country is in the grip of an electricity shortage which is affecting production.

A combination of a lack of rain and problems with the distribution infrastructure has led the government to introduce an energy use reduction plan.

Car makers and other manufacturers have been ordered to reduce energy consumption by 15 percent and the situation has prompted some economists to forecast a negative effect on Brazil’s economy.

“We have done everything possible to avoid affecting production,” said Anfavea president Célio Batalha.

“But we will only learn in the next weeks if the energy problem will affect vehicle production.”

Anfavea expects to produce 1.9 million vehicles this year and forecasts total Brazilian sales of 1.7 million units.

To view related research reports, please follow the links below:-

The automotive industry in Latin America: Mexico, Brazil and Argentina Forecasts to 2005

Automotive b2b – Strategic threats and opportunities in the automotive supply chain