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Brazilian Domestic Car Sale Comes Down

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2014-06-16

Brazilian car production is mainly for export to Argentina. However, the current economic condition in Argentina is not good, greatly influencing Brazilian car export. What’s worse, the domestic car sale of Brazil is less than expected, causing several Brazilian car manufacturers to cut down the production, ask employees to have day-offs or partly halt production. Brazilian Association of Automotive Assemblers (Anfavea) said that at the end of March 2014 all car manufacturers and agents had up to 0.3871 million units of cars in inventory, which could satisfy the domestic demand for 48 days and was a record high since November 2011. Chairman of Brazilian Association of Automotive Parts (Sindipecas) said that 70% of production of Brazilian auto parts suppliers is provided to local car manufacturers. Thus when Brazilian car manufacturers cut down the production, other auto parts suppliers have to reduce the production or ask employees to take day-offs.

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