Argentina defeats estimated production of cars in Brazil

The vehicle production this year should be just under 3 million of units by sector due to the fall in exports to Argentina. Still, it will be the best result of the last three years, 2.9 million units. By November were produced 2.7 million cars, light commercials, trucks and buses, 8.8% more compared to the same period in 2017. Last month production was of 245,100 units, 1.6% lower than a year ago. On the other hand, domestic sales will surpass the projections of automakers, to 2.5 million units. "The last forecast was high of 13.7%, but we're going to be around 15%," says Antonio Mann, President of the National Association of Automotive vehicle manufacturers (Anfavea). By November they were sold, 15 vehicles 2,330,000% in 2017, and Mann believes this month sales reach 250,000 units, with annual results around 2.6 million vehicles. For 2019 he predicts new high, 10% to 12%. "There is more confidence among consumers, credit has increased and the bad debt is the lowest in history, from 3.4% (the contracts)." "If the new Government makes the necessary reforms, such as welfare, the market will grow further and we can have a mini sales boom," says Pablo Di Si, President of Volkswagen of Brazil and Latin America. He tells that met recently with national and foreign investors and found that "are looking for Brazil with a lot of confidence in 2019". Volkswagen's sales have grown up on the market — 39% — and the same movement should be repeated in 2019, with the arrival of new products, especially the sports utility (SUV) T-Cross, predicts Di Si. What exports more disappointed the industry were exports, since the industry was expecting record volume of about 800,000 units, but the result must not exceed 650,000 units. Shipments to Argentina, which accounts for 70% of Brazilian exports of cars fell 16% until November (490,000 to 412,000). Exports to Mexico, the second largest buyer, had 44% drop (84800 to 47500). Sales also fell to Uruguay ( -17%) and Peru (-11.7%). Among the main customers in the region, only expanded purchases the Chile (28.3%) and Colombia (25%). "Our expectation is that the economic situation of Argentina start to improve from the second half," says Mann.