Motorcycle production falls 6.4% in PIM in October amid historic drought in Amazonas

Industrial Hub

The result for the year, however, remains broadly positive, as a reflection of market growth

Manaus (AM) – Motorcycle production fell again in October, due to the difficulty in transporting products due to the drought that hits Amazonas and mainly affects the river transport of components to assemblers in the Manaus Industrial Pole (PIM). In Manaus, the Rio Negro registered a record level during the drought, with just 12.70 meters, the highest level in 121 years.

Compared to September, motorcycle production fell 6.4%, according to a balance released this Tuesday (14), by the Brazilian Association of Manufacturers of Motorcycles, Mopeds, Mopeds, Bicycles and Similar Products (Abraciclo).

This is the second decline, in September, production had already fallen by 14.5% at the margin – that is, compared to August, when the volume of motorcycles manufactured was the highest in a decade.

In total, 131,300 motorcycles were assembled in October, 4.4% less than the number recorded in the same month of 2022. Last month, the low river prevented large ships from entering the region, forcing factories to resort to alternatives that made logistics slower, such as transporting cargo by ferry, or more expensive, such as transporting components by plane.

The situation required automakers to rearrange their assembly lines – postponing the production of models for which parts were missing – to the point where it was no longer possible to continue production. In the first ten days of November, Yamaha, the second largest motorcycle manufacturer in the country, brought forward collective holidays and stopped the Manaus factory due to difficulties in both the arrival of inputs and the flow of production.

The result for the year, however, remains broadly positive, as a reflection of market growth, which has been driven by the expansion of delivery services, as well as the replacement of cars with cheaper and more economical vehicles.

According to Abraciclo’s balance sheet, 1.32 million motorcycles were produced from January to October, 10.4% more than the total for the same period in 2022 and the best result, between equal periods, in ten years.

“The industry operates within what was planned and follows its production pace to meet market demand, which continues to rise”,

commented the president of Abraciclo, Marcos Bento.

The entity’s forecast is to end 2023 with 1.56 million motorcycles produced, corresponding to a growth of 10.4% compared to the 2022 result.

Product flow

The Amazonas State Industry Center (Cieam) points out that, despite difficulties, the transport of products from PIM companies has not completely stopped.

“Production continues to be transported as much as possible, as to date there has not been a complete interruption of logistical transit, even though there is a significant cost for the PIM industries”, he says in a note.

*With information from the Estadão website

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