Car assemblers are importing to meet demand
Valor Econômico - 04/07/2008
At the peak of its capacity, the automotive industry can not meet the domestic demand and the exportation contracts only with the local production any more. This sector depends on importations more than ever. The comparison between the total of vehicles produced form february of 2007 to this year's March and the volume sold in the country and abroad in the same period indicates a deficit of 327 thousand vehicles, which were imported from other countries, mainly from Argentina and Mexico. With investment programs already ready for an immediate industrial expansion, the assemblers began preparing themselves to increase their capacity. The sector is currently capable of producing 3.5 million vehicles per year. With programs of investments that will amount to US$ 5 billion until 2010, the sector will extend the capacity to 3.85 million units this year and to 4 million in two years' time. Estimates of the chain of suppliers indicate that, together with the car parts industry, the total of investments can reach US$ 20 billion. The manufacturers say that the expansions will be adequate to the demand. Between February of 2007 and March of 2008, the assemblers produced only 91.5% of the volume necessary to meet the domestic demand and the exportations. In the period, there were 3,548 million produced vehicles, while the total sales reached 3,875 million units. The difference of 327 thousand vehicles was supplied by importations. In the same period, importations showed an average growth of 6.43% per month, with an acumulated volume of 324 thousand vehicles, among automobiles, light trucks, trucks, and buses. Even though they are able to expand production to meet a demand being pulled by the expansion of the credit offer in the country, the manufacturers are preparing to raise the values of importation. Last year, 250 thousand vehicles were imported. The managers of the industry started the year getting read for a volume of vehicle importation that can be very close to 400 thousand units. Only in the first quarter of this year importations totaled 80.8 thousand units, a high of 60% compared to the same period last year. Althouhg the growth of the demand surprised the industry itself, the president of the National Association of the Manufacturers of Automachine Vehicles (Anfavea), Jackson Schneider, remembers that the investments that were recently announced by the assembly plants should help balance the sheets. The chairman also admits that the last increases in the prices of some raw materials of the automotive chain may lead to some automobile prices's readjustments.