SAO PAULO: Brazil’s auto production, sales and exports of new vehicles declined in May, as the deep economic recession persists, leading the automakers’ association to reduce its estimate for this year. Sales of cars, light vehicles, trucks and buses fell 21.3% from a year earlier to 167,489 units, automakers association Anfavea said Monday. In the first five months of the year, sales fell 26.6% to 811,739 units.
Anfavea cut its forecasts for sales to a decline of 19% from the previous drop of 7.5%. It also cut its view for production this year to a contraction of 5.5% this year, compared with a previous outlook of an increase of 0.5%. By value, exports dropped 25.5% in May to $941.6 million and 12.6% to $3.96 billion in the five-month period.
Economists say a combination of weak economic growth, a high inflation rate and rising interest rates is hurting consumer confidence, especially related to big-ticket items. Brazil’s economy contracted 3.8% last year and is expected to shrink by a similar amount this year, according to economists surveyed by the country’s central bank.
