By Lise Alves, Senior Contributing Reporter
SÃO PAULO, BRAZIL – Automobile sales in Brazil fell by 25 percent in the first semester of 2016 in comparison to the same period last year, according to the latest data by FENABRAVE (National Federation of Automotive Distributors). This is the worst result for the first semester for the sector in ten years.
According to the entity automobile sales in the first half of 2016 totaled 951,200 automobiles while during the same period in 2015 the volume of light vehicles sold totaled approximately 1.27 million.
Significantly affected by the strong economic recession and the on-going political turbulence, disappointing sales are only expected to recover when the country’s political uncertainties are dissipated, says the entity. “We do not forecast any major changes in the industry data until the political scenario is defined,” said FENABRAVE president, Alarico Assumpção Junior, in a release to announce the results.
According to officials, FENABRAVE has not changed its forecasts for the year, estimating an overall decline by -15.04 percent in automobile, truck, road equipment and motorcycle sales this year. Automobile sales are expected to fall by twenty percent, while trucks sales should decline by twenty-three percent, if the economy starts to react.
“These projections already consider an improvement in the overall economy and the industry, because if the data remained as seen at the beginning of the year, the results would be worse,” notes Assumpção Junior.
Forecasts from Anfavea (National Automotive Manufacturing Association) however, are not as optimistic. According to a forecast at the beginning of June, the entity believes automobile sales this year should decline by more than two million units, or approximately nineteen percent.
“Forecasts take into account the difficult economic situation early this year, which negatively affected light vehicle sales,” said Anfavea’s president, Antonio Megale, in a release. Megale forecast that due to the favorable foreign exchange rate, exports should increase by 21.5 percent this year, helping the sector’s overall results.