Zero car with discount: vehicle production has a drop of 16.8% in the month, but stocks are balanced, says Anfavea

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Resources for discounts on new cars ended and, according to the association’s president, helped to reduce inventories at automakers and fulfilled ‘very well’ the proposal to bring cheaper cars to the consumer. Aerial image of the Volkswagen yard on ABC Paulista crowded with vehicles this Wednesday (28). Leonardo Benassatto/Reuters With the stoppages of car factories last month, vehicle production in Brazil had a sharp drop of 16.8% in June. The data were disclosed this Friday (7) by the National Association of Motor Vehicle Manufacturers (Anfavea). In May, production reached 228,000 vehicles, against 189,000 last month. The result was hampered by the closure of five factories in the country, due to lack of demand for new vehicles. In the semester, the sector reaped a discrete increase of 3.7%, reaching 1.13 million vehicles produced. The result, however, should be mitigated in the coming months by the federal government’s program of discounts on the purchase of zero cars. According to Márcio de Lima Leite, president of Anfavea, the first effects of the program were concentrated on the unloading of inventories by Brazilian automakers. It was the vehicles stopped in the yards that motivated, at first, the stoppage of automakers. “The sector had very high inventories at the end of May. Within the strategy and conditions of the manufacturers, there was a reduction in production to adjust and balance inventories”, says Lima Leite. Anfavea data show that inventories were reduced from 251.7 thousand in May to 223.6 thousand vehicles in June, between automakers and dealerships. This equates to a reduction from 40 to 35 days of bookings. The executive pointed out that the government’s program should drag part of the results to the month of July. According to Anfavea, the last week of June had the highest daily sales in the last 10 years, and there is an interval between sales and registrations that should only be reflected in the next releases. “The resources available for the zero car ended, fulfilling very well the program’s proposal of bringing cheaper cars to the consumer, with fleet renewal and economy heating up”, he says. Anfavea says that more than 79,000 units were produced and sold in the last four days of June, which are not included in the June results.

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