Brazilian production fell behind that of Mexico in 2014
- Brazilian automobile production, unlike many other countries, saw its best years between 2008 and 2013 (and not before 2008).
- Hence, 2014 was significantly worse than in previous years, and fell back to 2007 levels, a level close to 3 million PC + LUV, a decrease of 14% compared to 2013
- A slow local market (-7% in 2014) and dropping exports (-41%) are accountable for this negative trend in production. The level of exports is mainly due to Argentina (first Brazilian exporting country), which in turn suffered a decline in its domestic market (-28.6% in 2014) and whose customs agreements with Brazil were unstable.
- So, Brazilian production decreased last year and arrived behind that of Mexico that benefited from its exports to the United States, a market that is experiencing strong growth at the moment.
- A stabilization of the agreements between Argentina and Brazil is expected in 2015 to significantly improve the level of exports. Also a positive effect on Brazilian production is expected due to the government's plan to set up during the 2nd half of 2014 and aims to support the Brazilian automotive industry by providing purchasing amenities for Brazilian consumers of locally produced vehicles.
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