The Brazilian automotive market will continue with high prices as long as there is the war in Ukraine, lack of components and global inflation.
This is the assessment of the analyst and specialist in the automotive sector, Flavio Padovan.
In an interview with CNN Radio he explained that the state of semiconductor chips – used in electronics, appliances and automobiles – “is expected to last until the second half of next year.”
The situation was exacerbated by “successive lockdowns in China, and by the situation in Ukraine and Russia, which are producers of paladium and neon gas, which are important for production.”
At the same time, the expert believes that production of the so-called “popular car” should not resume anytime soon.
“What happens is that with the crisis, the automakers ended up directing production to the most profitable vehicles to minimize the effects of the crisis, the popular ones ended up disappearing from the market”, he said.
He states that it is difficult to answer when the situation may be reversed: “I think it is difficult in the short and medium term, we can minimize, refocus on lower value-added products, but while the war lasts, we have global inflation and a lack of components, it is a set that pressures prices up.”
According to Flavio Padovan, the financial impact of this whole situation is “very large” and still incalculable for Brazilian automakers.
*With production by Isabel Campos
Source: CNN Brasil
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