New car registrations have an annual high of 9.67% in July, says Fenabrave

The number of new car registrations in July 2022 rose 9.67% compared to the same period last year, according to the Fenabrave , association that represents the concessionaires. Compared to June this year, the high was 1.46%.

This is the first time in the year that the association has registered a positive result in both comparisons. Despite the favorable data, when considering all vehicles, Fenabrave announced a drop of 2.6%, in the segments added in the comparison with the previous month, and a retraction of 0.6% in relation to July 2021.

“The segments had different behaviors in July. Some registered better numbers than those of June, with emphasis on automobiles, light commercial vehicles and trucks, while others, such as buses and motorcycles, showed retraction”, said Andreta Jr, president of Fenabrave.

Andreta Jr pointed out that the result of the fall in some sectors can be explained by the supply problems of the industry, with impacts on the production of vehicles. He also highlighted the greatest difficulty in obtaining credit at the moment.

In the first seven months of the year, the sector showed a result close to stability, when compared to the same period in 2021, with a decrease of 2.7%.

“The drop can be explained by a set of factors, such as the lower supply, especially in the two-wheel segment, due to problems in production and the greater restriction and increase in the cost of credit, since the delinquency, in the financing of vehicles, is at 4.5%, according to data released by Bacen, referring to April 2022”, he added.

The industry association reported that the new IPI reduction for automobiles, which went from 18.5% to 24.75% (from August 1st), should lead to an increase in license plates in the coming months of 2022.

According to Fenabrave, growth is expected to take the indicator to a level equivalent to that obtained in 2021 or, at best, to a growth of more than 4%, for autos and light vehicles, reaching a total of more than 2,060. 000 units.

“If production returns to normal, and with this additional stimulus from the government, we may be able to reach this level,” said Andreta Jr.

Industrial production

This Tuesday (2) the IBGE (Brazilian Institute of Geography and Statistics) also released the indicator on industrial production, which fell by 0.4% in June compared to the previous month.

The result reflects the restriction of access to inputs and components for the production of the final good. In addition, the IBGE mentions that the behavior of industrial activity has been marked by stoppages at industrial plants, reductions in working hours and collective vacations.

Although production has had supply challenges that have prevented better results, the automotive vehicle segment was one of the most positive in the indicator, with a rise of 6.1%.

“The vehicle sector accentuated the growth seen in May, but this increase was not able to eliminate previous losses. The balance is still negative, since it is still 8.5% below the pre-pandemic level”, said researcher André Macedo, manager of the study.