2018 production may make it to 3.2m units of Brazils 5m, two shift capacity.

2018 production may make it to 3.2m units of Brazil's 5m, two shift capacity.

Brazil's auto industry recovery appears on track after the first two months of 2018: production and registrations of new motor vehicles achieved double digit growth in the period.

This year is a promising one for a strong recovery after years of malaise, despite general elections in October which will include a change of president, thus creating some economic uncertainty.

GDP growth is expected to be over 3% versus 2017 based on inflation around the 3.5% mark.

Analyst forecasts for the auto sector are being revised upwards.

Some analysts and industry executives now estimate the domestic market will expand 15% or more this year, to 2.6m units of light and heavy vehicles.

Production may make it up to 3.2m units of Brazil's estimated 5m total production capacity.

In the first two months of 2018, 431,600 vehicles left Brazilian assembly lines, up 15% year on year.

Last month alone 213,500 units were produced versus 201,100 in February 2017.
February registrations rose 15.7% to 156,900 units from 135,700 last year.

Year to date registrations were up 19.5% to 338,200 units from 2017's 282,900.

For Anfavea president Antonio Megale, domestic sales and exports are positively impacting industry output: "This two month result is highly important for the sector. Registrations are healthy and average February daily sales were far better than in January, despite the short month, and curtailed by the Mardi Gras festivities.

"This pace, together with the sound export level, pushes production up and helps better use of capacity."

Exports rose 7.2% in January-February to 112,700 units from 105,100 last year.

But February exports dipped 1.2% to 66,300 though the year to date tally was up 42.9% (46,400 in January).

Auto market intelligence
from just-auto

• Auto component fitment forecasts
• OEM & tier 1 profiles & factory finder
• Analysis of 30+ auto technologies & more