As a result of slow sales on days the Brazilian soccer team played matches in the just-ended World Cup, the automotive market saw a 1.5% decrease in production and sales off 0.1% in June compared with the same month last year.
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But one month’s result did not detract from a good first half for 2006.
According to the Brazilian National Automakers Association (Anfavea), the country built 1,302,381 vehicles in the first half, up 4.4% compared with the 1,247,753 units made in H1 2005.
Local sales grew 7.6%. In the first half, automakers sold 861,225 locally-made and imported vehicles, compared to 800,128 units in H1 2005.
Imported vehicles took 5.7% of sales this year compared with 4.8% last year.
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By GlobalDataThis is a result of the growing strength of the Brazilian real against the US dollar which made imported vehicles, particularly those made in Argentina and Mexico, which have free trade agreements with Brazil, more competitive.
In contrast, the currency’s strength hit H1 exports of Brazilian-made vehicles. Local automakers shipped 422,899 vehicles, off 3.7% compared with the 438,940 units exported in the first half of 2005.
However, despite the unit volume decrease, Brazilian automakers received more export revenue – $US5.57bn compared with $US5.27bn, a rise of 5.6%.
The automakers see exports lower in 2006 than 2005 but expect domestic sales growth to compensate.
As a result, Anfavea believes that vehicle production in Brazil will increase about 7% year on year.
In a year it celebrates 30 years in Brazil, Fiat led the cars and light commercials segments with 201,103 vehicles sold in the first half of 2006.
Volkswagen (exclusidng Audi) was second with 186,004 units, a little ahead of GM (185,262).
Despite not producing and sell truck and bus chassis in Brazil, Fiat nonetheless led in total vehicle sales in the first half.
Volkswagen, including trucks and bus chassis, sold 199,437 units for second place and GM, which also doesn’t sell trucks and buses, was third.
Rogério Louro
