Anfavea expects growth of 2.880 million vehicles in 2008

Priscila Dal Poggetto
Diário do Grande ABC

With the year virtually over, Anfavea, the Brazilian Vehicle Makers Association,expects a 17.5% growth in the domestic market in 2008, representing 2.880 million new vehicles. In order to meet the demand, production should increase approximately 9%, to 3.240 million vehicles.

“It is a very positive moment for the sector. It takes the position of the Brazilian industry to a new level globally, which has a strategic importance while evaluating companies”, states Jackson Schneider.

Anfavea’s figures dismiss fears that the Brazilian market is affected by the global crisis influenced by the United States. According to the economist Raul Velloso, Brazil today “has more muscle power” in the form of reserves to withstand any international shock. “We have US$ 170 billion in reserve against a requirement of less than US$ 40 billion”, he adds.

Prices – Despite indications of increase in commodities prices next year – iron ore prices should rise 30%, the president of the Brazilian Automobile Manufacturers Association – Anfavea, does not believe in raising vehicle prices: “I believe the scale of production within the supplier chain will curb price rise”.

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