Production of cars rises 14% on year

Car production in Brazil grew 13.7% from January to August, while sales fell 1.2% over the same period, according to data from the National Association of Automotive vehicle manufacturers (Anfavea). The numbers, which at first glance may seem contradictory, in fact are an effect of the reduced participation of imported vehicles in the Brazilian market, direct reflection of government programs.
According to market data, total imported that participation in the domestic market fell to 23.6% to 18.6%, or 5 percentage points between 2011 and 2013. These numbers include both vehicles brought by automakers and the importers. The slice of purchases from external companies that still do not have factories in the Country-as JAG, Land Rover and Kia-is today in 4%. Two years ago, came to 5.8%.
Among the reasons behind this movement is high in the tax on industrialized products (IPI) in 30 percentile points for imported vehicles, which undermined the importers. Two other government decisions affected automakers: the reduction of the share of imports from Mexico and the creation of Innovate-Auto, which extended benefits to companies that produce in the country. More recently, the high-dollar spent to increase this reduction to imports.
Among the importers, the Government's decision virtually made the business of companies bringing cars from China in large quantities. ' This model was abandoned, because the Government has set a quota of 4.8 thousand vehicles per year for each company with the IPI old ', says Flávio Padovan, President of Abeiva, Association of car importers. ' The price of the most popular imported ceased to be competitive. '
Among automakers with factory in Brazil that brought vehicles of other subsidiaries, the strategy has been nationalizing the greater volume of sales lines. Ford brought the New Fiesta production line for the Country. The company, which came to lose the fourth position in the ranking of Hyundai vehicles, recovered to manufacture the New Fiesta here, reducing the selling price of the car.
' Throughout last year, we sold 30 thousand units of the New Fiesta imported from Mexico ', says Rogelio Golfarb, Ford Vice President for Latin America. ' Since we started to produce the vehicle in Brazil, we sold 16 thousand units in four months. '
The same path must be trodden by Nissan, which today brings the March-your sales champion of Mexico. The company has already announced that it will manufacture the vehicle locally, in Resende (RJ), from 2014.
For Golfarb, the sale of large-volume vehicles in the country is only feasible with local production. ' We know that the Government won't give up a healthy industry in the country, says the Executive. Imports, according to him, is used only for high-value vehicles, like the Fusion.
Exports-according to the Anfavea, exports are also on the rise: the projection of the entity is an expansion of 20% in volume and 8.8% in values in 2013. According to the State it was found, however, the greater part of the surplus goes to Argentina, where the Brazilian cars have easy entry. ' Hand has been no gain competitiveness, ' says a source. (Value)