LatinNews Daily - 09 March 2022

* Brazil’s national association of vehicle manufacturers (Anfavea) has released the sector’s results for February, which showed a “discreet improvement” compared with the “weaker” performance in January. According to the Anfavea, Brazil produced 165,900 automotive vehicles in February. While this represents a 14.1% increase on January production levels, it is 15.8% below production in February 2021. Meanwhile, sales grew 2.2% compared with January to 123,900 units, but fell 22.8% year-on-year. The automobile sector continues to suffer from shortages of key components. The Anfavea further notes that two recent developments have caught the sector by surprise: on the one hand, the government’s decision to cut the tax on industrial goods (IPI) by 18.5% for cars and light commercial vehicles should be beneficial; on the other hand, the war started by Russia in Ukraine casts uncertainty over the economy and the logistics supply chain globally, potential damage which the Anfavea says it is prepared to “mitigate”.

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