Vehicle Sales in Brazil Closes 2020 with A 26.2% Drop

The automotive market ended 2020 with the biggest fall in five years. However, with the peak in 12 months presented in December, sales of new vehicles in the country ended up being better than the volume forecast by the automakers.

Among passenger cars, light utility vehicles, trucks and buses, the total number of registered vehicles last year was 2.06 million units, 26.2% below sales in 2019. This is a drop that has not been seen since 2015, when the The sector’s fall, in the midst of the Brazilian recession, reached 26.6%.

Anfavea, the entity that represents the manufacturers, had, however, a worse forecast, with the market closing the year at 1.92 million units, which would be a drop of 31%.

The final result of 2020 had the positive contribution of December, the month in which the concessionaires delivered 244 thousand vehicles, the best result in the 12 months of last year. In comparison with November, which was the record of the year, sales rose 8.4%. Despite this, consumption remained below the figures for the previous year: a drop of 7.1% compared to December 2019 license plates.

In the final stretch of the year, the lack of parts limited production, which already hindered the covid-19 prevention protocols, which force factories to operate with fewer workers simultaneously. As a result, the industry is unable to accelerate the pace to fully meet the waiting list that has been formed, especially among fleet customers, such as rental companies.

On Friday, 8, Anfavea will release its forecasts for 2021. Predictions released individually by automakers point to a market of no more than 2.5 million vehicles. The expectation in the sector is that the volumes of 2019 – before, therefore, the pandemic – will only be repeated in 2023.