Lower IPI makes car production double in January
Valor Econômico 02/10/2009
In response to the reaction of the domestic market to a lower IPI (Excise Tax), the production of vehicles increased 92.7% in January compared to December and the stocks decreased from 211.3 thousand to 193.3 thousand units. The stock at the end of January was equivalent to 31 days of sales. The makers ended the month with a production of 186.1 thousand vehicles. In spite of the advance in comparison with the previous month, the volume was 27.1% lower if compared to the total of January/2008. The volume of 186.1 thousand units stayed, in fact, below the average of the months of the two last years, losing only to December, when 102.1 thousand units left the assembly lines. The domestic market tends to be better in February. The makers expect a daily average of production of 10.8 thousand units, therefore, above the 8.9 thousand from January. The daily volume of sales projected for this month is more than the double of December. The performance of the exports continues showing the crisis in the neighbor countries, main markets of the Brazilian cars, continues affecting the orders from abroad. The external sales of vehicles and machines amounted to US$ 428.3 million in January, a fall of 50.5% compared to the previous year and 58.2% in relation to the same month of last year. In January 21.1 thousand vehicles were exported, a 61.2% fall compared to the same month of 2008.