Brazil automakers association lowers forecasts for 2022 production, sales

SAO PAULO (Reuters) – Brazil’s automakers association Anfavea on Friday lowered its 2022 estimates for the country’s auto industry production, with monthly output falling in June as companies grapple with auto parts supply issues.

Anfavea now sees auto production in Latin America’s largest economy reaching 2.34 million units this year, a drop from its January forecast of 2.46 million vehicles.

Projections for 2022 now represent a 4.1% uptick from 2021, down from January’s estimate of a 9.4% annual increase.

According to Anfavea, there are currently five Brazilian assembly plants halted due to a lack of auto parts and electronic components.

“It is a persistent challenge,” Anfavea’s head Marcio de Lima Leite told a press conference.

Anfavea has also cut its forecast for 2022 auto sales to 2.14 million units from 2.3 million in January, with annual sales growth now standing at 1% year-on-year.

Export expectations for the year, however, were raised to 460,000 vehicles from 390,000. That would represent a 22.2% jump from 2021.

The association reported Friday that month-on-month auto production in June fell 1.1% to 203,598 units, while sales were down 4.8% to 178,067 vehicles.

(Reporting by Alberto Alerigi Jr.; Writing by Gabriel Araujo; Editing by Chris Reese)