Lula demands greater national production from the automotive industry – 03/21/2023 – Market

President Luiz Inácio Lula da Silva said this Tuesday (21st) that he will call on the automotive industry to discuss the scenario for the sector and stated that he wants the country to produce more and import less vehicles.

At least four major automakers in the country (General Motors, Stellantis, Hyundai, and Mercedes-Benz) have recently announced collective vacation periods, citing problems including the level of market demand and shortages of parts, such as electronic components.

“How are we going through what we are going through in the automobile industry”, questioned Lula in an interview, taking the opportunity to criticize the business community, who, according to him, have stopped “thinking about Brazil”.

“We have to stop importing so many cars and manufacturing them in Brazil. If we have 30 automobile industries in Brazil, we have to produce cars here,” said Lula, saying he was surprised by the announcements of collective vacations.

In the interview with channel TV 247 on YouTube, in addition to stating that he will call the vehicle industry to understand what is happening, he again criticized the country’s basic interest rate, which is 13.75% per annum.

New vehicle sales in February were the lowest for the month since at least 2020 and the total licensed in the first two months rose 5.4% over the same period in 2021, to 272,800 units, according to data from the association that represents the sector, Anfavea.

Sought, the entity could not immediately comment on the matter. The production capacity of the Brazilian automotive industry currently stands at 4.5 million vehicles, compared to production in 2022 of around 2.37 million units and a forecast for 2023 of 2.42 million.