New-vehicles sales and production in Brazil declined in
September amid the country’s sluggish economy, prompting the national auto
makers’ association to reduce its sales and production forecast for this year.
Sales of cars, light vehicles, trucks and buses totaled
200,077 in September, down 32.5% from a year earlier, auto makers association
Anfavea said on Tuesday. In the January-September period sales dropped 22.7% to
1.95 million units.
Output fell 42.1% to 174,240 units in September from the
year-earlier period. So far this year, vehicle production totaled 1.9 million
units, down 20.1% versus the same period of 2014.
Anfavea cut its estimates for the third time so far this
year. It said it now expects a decline in sales of 27.4% this year, compared
with its previous outlook of a drop of 20.6%. It expects vehicle production to
fall 23.2%, versus its previous projection of a 17.8% decline.
Meanwhile, exports by value fell 10.8% in the first nine
months to $7.95 billion. Exports declined 9.7% in September from a year earlier
to $834 million.
Economists say a combination of weak economic growth, high
inflation and rising interest rates is hurting consumer confidence, especially
toward big-ticket items.
Brazil’s economy is expected to contract 2.85% 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, General Motors Co. , Volkswagen AG and Ford Motor Co.
Source:http://www.wsj.com/articles/brazils-auto-sales-production-fall-in-september-1444146544