The Brazilian automotive industry plans to roll out 3.24 million vehicles in 2008

The Brazilian automotive industry plans to roll out 3.24 million vehicles in 2008

(Murillo Camarotto | Valor Online)

SÃO PAULO – The Brazilian automotive industry plans to produce 3.24 million vehicles in 2008, an 8.9% growth over the 2.97 million vehicles projected for 2007. Next year’s target is quite close to the Brazilian industry´s present nominal installed capacity of 3.5 million units, which raises doubts about the feasibility of meeting the 2008 target but Anfavea, the Brazilian Vehicle Makers Association,is confident that it is possible.

According to its Chairman, Jackson Schneider, if the industry maintains the average daily production of 13,370 vehicles registered in November, it will close 2008 with 3.43 million vehicles rolled out. Moreover, he recalled, the present capacity of 3.5 million vehicles does not take into account the new investments announced by carmakers or creation of new shifts in the assembly lines.

As for domestic sales, Anfavea´s estimate for 2008 is 2.88 million vehicles,which 17.5% more than the 2.45 million sold during the current year. Sales of locally manufactured vehicles in 2008 should total be 2.5 million (up 14.4%),while sales of imported vehicles should be 30,000 (up 43.4%).

The strengthening of the Brazilian Real against the Dollar should result in a 5.1% drop in exports, with the estimate being 740,000 vehicles in 2008 against 780,000 this year, which itself was 7.3% lower in relation to 2006. In terms of value, exports should remain stable at around US$ 13 billion.

Anfavea´s estimate for 2008 is based on the estimated 4.7% growth in the GDP. Mr. Schneider says he fervently hopes that the exchange rate remains “a little over” the current rate of about R$ 1.80.

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