BRASILIA: Brazil’s new vehicles sales, production and exports dropped in August, as consumer confidence remains low.
Sales of cars, light vehicles, trucks and buses totaled 207,250 in August, down 23.9% from a year earlier, auto industry association Anfavea said Friday. In the January-August period vehicles sales dropped 21.4% totaling 1.75 million units.
Production fell 18.2% in August from the year-earlier period, to 216,465 units. So far this year, vehicle production totaled 1.73 million units, down 16.9% versus the same period of 2014.
Meanwhile, exports by value fell 10.7% in the first eight months of 2015 to $7.14 billion. Exports for August fell 15.7% from a year earlier at $847 million.
Economists say a toxic combination of weak economic growth, high inflation and rising interest rates are hurting consumer confidence, especially toward big-ticket items.
Brazil’s economy is expected to contract 2.26% this year, according to economists surveyed by the country’s central bank.
Falling consumer demand has forced many auto makers in Brazil to lay off employees, and implement voluntary severance programs and mandatory vacations.
The largest auto makers in Brazil by sales are Fiat Chrysler Automobiles NV (FCAU, FCA.MI), General Motors Co. (GM), Volkswagen AG (VOW.XE, VLKAY), and Ford Motor Co.
Mercedes-Benz sees Brazil truck sales up 18% in 2020
SAO BERNARDO DO CAMPO, Brazil: The Brazilian unit of German automaker Mercedes-Benz (DAIGn.DE) expects overall domestic truck sales to rise...
