Brazilian car production
Production of automobiles and light commercial vehicles in Brazil grew 1.3% in 2023, following the trend in sales of these vehicles, which rose 11.2% in the period, according to figures presented by the National Association of Motor Vehicle Manufacturers – ANFAVEA. Exports shrank by around 16%, while imports increased by 29%.
The heavy vehicle segment no longer followed this trend, with production of trucks and buses falling by 37.5%. The main cause of this mismatch was the increase in production costs to meet stage P8 of the Air Pollution Control Program from Motor Vehicles – PROCONVE, which began at the beginning of 2023.
The country’s total production, including all vehicles, reached 2,325 units, falling by 1.9% compared to 2022, with light vehicles showing an increase of 11.2% and 2,180 units produced.
Total vehicle registrations in 2023 reached 2,309 units, an increase of 9.7% more than in the previous year, with constant growth throughout the year. The month of December, for example, saw close to 12,400 licensed units per day, the best result in the last four years. This good result was directly linked to purchases made by car rental companies, with 75,000 units, around two-thirds higher than the 2022 average.
According to ANFAVEA, promotions for sales of hybrid and electric vehicles before the return of the import tax, which occurred at the beginning of 2024, boosted the number of registrations.
Regarding exports, Mexico surpassed Argentina as Brazil’s main buyer, with 32% of the total, which was an unprecedented fact in the history of the Brazilian automotive industry. The Mexican market grew by 24.4% in the year, with Brazilian products reaching close to 8% of the total.
In addition to the 51% growth in shipments to Mexico, only Uruguay showed an increase, something around 5%, compared to 2022, with other markets showing declines, such as Chile with -57%, Colombia with -53% and Argentina with -16%.
