{"id":95311,"date":"2025-08-08T14:17:46","date_gmt":"2025-08-08T17:17:46","guid":{"rendered":"https:\/\/murray.adv.br\/?p=95311"},"modified":"2025-08-08T14:17:46","modified_gmt":"2025-08-08T17:17:46","slug":"exports-to-argentina-help-brazil-sustain-car-manufacturing-pace","status":"publish","type":"post","link":"https:\/\/murray.adv.br\/en\/exports-to-argentina-help-brazil-sustain-car-manufacturing-pace\/","title":{"rendered":"Exports to Argentina help Brazil sustain car manufacturing pace"},"content":{"rendered":"
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Vehicle exports to Argentina rose 156.5% in one year; industry revises forecast<\/strong><\/em><\/h6>\n<\/div>\n<\/div>\n
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08\/08\/2025\u00a0<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n

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Brazilian automakers are bracing for a slowdown in domestic market growth. Thanks to rising exports to Argentina, however, they will be able to keep production levels steady.<\/p>\n<\/div>\n

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Driven by stronger demand from its southern neighbor, the share of exports in Brazil\u2019s auto industry has risen from 14% to 25% over the past year.<\/p>\n<\/div>\n

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Noticing signs of a rebound in Argentina\u2014Brazil\u2019s top export destination for vehicles\u2014automakers had been preparing since January to ramp up shipments. At the time, the National Association of Vehicle Manufacturers (ANFAVEA) projected a 7.8% increase in exports in 2025.<\/p>\n<\/div>\n

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However, the recent performance exceeded expectations, said the ANFAVEA president, Igor Calvet. On Thursday (7), the industry association revised its forecast sharply upward, now projecting a 38.4% increase in vehicle exports this year.<\/p>\n<\/div>\n

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In a year, vehicle sales from Brazil to Argentina surged 156.5% to 183,900 units. Argentina\u2019s share of total exports rose from 35% to nearly 59%. Although sales to other neighboring markets such as Colombia and Chile also increased, Argentine demand was the key driver behind what ANFAVEA is calling a \u201csurprising surge.\u201d<\/p>\n<\/div>\n

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From January through July, Brazil exported 312,100 vehicles, a 52.7% increase compared to 2024. Export revenue reached $8.33 billion, up 43.9% year-over-year.<\/p>\n<\/div>\n

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According to Mr. Calvet, foreign demand has been the main reason automakers have expanded hiring in recent weeks. In just one month, 400 new positions were created. Total employment in the sector now stands at 109,100, up 4.4% over the past 12 months.<\/p>\n<\/div>\n

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Stronger prospects for exports are helping the industry offset weaker domestic demand and maintain the production targets announced at the start of the year.<\/p>\n<\/div>\n

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ANFAVEA lowered its forecast for domestic market growth in 2025 from 6.3% to 5%, or 2.765 million vehicles. However, it kept its projected increase in production at 8.4%, totaling 2.749 million units.<\/p>\n<\/div>\n

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Not even the federal government\u2019s Sustainable Car incentive program will be enough to reverse the trend. The program eliminated the Industrialized Products Tax (IPI) on a list of basic car models, leading to a 16.7% spike in sales of those vehicles in its first month.<\/p>\n<\/div>\n

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The industry association points to high interest rates as one of the main factors behind weakening demand, especially for trucks. ANFAVEA holds a pessimistic outlook for the heavy-duty transport segment.<\/p>\n<\/div>\n

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Since the beginning of the year, demand for trucks has fallen 4.1%, and the situation may deteriorate further in the coming months. The trade group revised its 2025 forecast for domestic truck sales from a 0.2% increase to an 8.3% drop. \u201cInstability hurts us, and high interest rates kill us,\u201d Mr. Calvet said.<\/p>\n<\/div>\n

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But it\u2019s not just the basic interest rate\u2014which is now at its highest level since 2006\u2014that threatens to slow production lines. According to Mr. Calvet, the U.S. government\u2019s new import tariffs, in effect since Wednesday (6), will also impact the truck market. He noted that nearly all of Brazil\u2019s exports to the U.S. rely on trucking to reach the ports.<\/p>\n<\/div>\n

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The tariff hike announced by President Donald Trump is also expected to hurt exports of components such as engines. In that case, the import tax jumped from 2.5% to 27.5%. Based on ANFAVEA\u2019s estimates, this could cost the industry $268 million if current shipment volumes continue, which the leader doubts will happen.<\/p>\n<\/div>\n

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While presenting the industry\u2019s results, Mr. Calvet again criticized the growing volume of Chinese vehicle imports. Chinese car sales in Brazil are now approaching those from Argentina.<\/p>\n<\/div>\n

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From January to July, 87,800 Chinese vehicles were sold in Brazil\u2014up 41.2% from the same period in 2024. Vehicles imported from Argentina totaled 121,400, an 11% increase year-over-year.<\/p>\n<\/div>\n

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\u201cImports from Argentina are positive because we also export there, but we sell nothing to China,\u201d he pointed out.<\/p>\n<\/div>\n

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At the same time, Mr. Calvet praised a recent decision by Brazil\u2019s Foreign Trade Chamber (CAMEX), which limited the import tax exemption period for semi-knocked-down (SKD) vehicles to six months. BYD, which is preparing to launch local production, had requested a longer exemption of one year. The CAMEX also imposed quotas on SKD imports, which will apply to all brands, including ANFAVEA members.<\/p>\n

*By\u00a0Marli Olmos\u00a0\u2014 S\u00e3o Paulo<\/p>\n

Source: Valor International<\/p>\n

https:\/\/valorinternational.globo.com\/<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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