Production vehicles must have surplus of up to 1.6 mi

SÃO PAULO, 24/11.2013-the arrival of new assembly plants in the country will generate excess production capacity estimated at about 1.4 million vehicles (excluding trucks and buses) in 2017, designs the PricewaterhouseCoopers (PwC). The surplus will reach 1.6 million units in 2015, but then should fall to just over 1 million units in 2019.
The PwC calculates that in 2017, the factories will have to produce structure 6.1 million vehicles, volume that virtually will be held two years later.
The National Association of Automotive vehicle manufacturers (Anfavea) provides capacity to 5.7 million vehicles until 2017, compared with 4.6 million demand, including trucks and buses, which would result in a surplus of 1.1 million vehicles. Today, says the organisation, there are 700 thousand.
"Excess is greatest precisely in the compact segment," says PwC partner, Ricardo Pazzianotto. This is the track that the production volume is greater. Already the luxury segment, which is attracting three new brands to the country-Audi, BMW and Mercedes-Benz-no danger of overcapacity.
That niche is expected to triple in size in four years, to about 100 thousand units, according to the manufacturers. Together, the three German brands announced plans to produce 78 thousand vehicles per year. There will still be imported and the Land Rover, which will also make luxury cars, but sports-utilities category.
"No doubt it will be a tough fight, but healthy," says the President of Mercedes-Benz of Brazil, Philipp Schiemer. The Chairman of GM South America, Jaime Ardila, also bet on difficult days. "It is possible that the sector operates with idleness and there will be price war". The information is from the newspaper O Estado de s. Paulo.