Brazilian automakers association lowers 2022 production and sales forecasts

SAO PAULO, July 8 (Reuters) – Brazil’s automaker association Anfavea on Friday lowered its 2022 estimate for the country’s auto industry output, with monthly production falling in June as companies grapple with… auto parts supply problems.

Anfavea now sees auto production in Latin America’s biggest economy hit 2.34 million units this year, down from its January forecast of 2.46 million vehicles. Read more

Projections for 2022 now represent a 4.1% increase from 2021, down from January’s estimate of a 9.4% annual increase.

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According to Anfavea, five Brazilian assembly plants are currently shut down due to a lack of auto parts and electronic components.

“It’s a persistent challenge,” Anfavea director Marcio de Lima Leite told a news conference.

Anfavea also cut its 2022 auto sales forecast to 2.14 million units from 2.3 million in January, with annual sales growth now at 1% year-on-year.

Export expectations for the year, however, have been raised to 460,000 vehicles from 390,000. This would represent a jump of 22.2% from 2021.

The association reported on Friday that month-over-month car production in June fell 1.1% to 203,598 units, while sales fell 4.8% to 178,067 vehicles.

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Reporting by Alberto Alerigi Jr.; Written by Gabriel Araujo; Editing by Chris Reese

Our standards: The Thomson Reuters Trust Principles.

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