Vehicle registration plates have fallen since July 2005 | Photo: Marcelo Camargo / Arquivo / Agência Brasil
Data released on Tuesday (3) by the National Federation of Motor Vehicle Distribution (Fenabrave) shows that the global crisis in the supply of inputs for the industry has extended its effects beyond the country’s car manufacturers. With factories shut down in whole or in part due to semiconductor shortages, factories cut deliveries to dealers and the volume of licensed vehicles fell 7.3% in July. The record is the lowest since July 2005, according to Fenabrave.
According to the federation, license plates recovered during the year, but car stocks remain low. According to Fenabrave President Alarico Assumpção Júnior, “if production were normalized, mainly for automobiles, we could have even greater growth than expected for this year”.
The bad news for the segment is that the outlook is that the component shortage will continue with no short-term solution on the horizon.