Automotive production in Brazil dropped 11.2 pct in 2016

Brazil's production of automotive vehicles reached just 2.16 million units in 2016, a drop of 11.2 percent on 2015, according to a report issued Thursday by the national association of automakers, Anfavea.

This number covers the production of passenger cars, light commercial vehicles, buses and trucks. The combined sales for these categories fell by an even sharper 20.2 percent, according to Anfavea president, Antonio Megale.

The heavy vehicles sector took a particularly heavy hit, dropping 29.4 percent to reach low levels unseen since 1999.

The current vehicles being stored by factories and ready for sales stood at just 176,200 units at the end of the year, the lowest since 2012.

Furthermore, as demand fell, automotive companies saw around 9,000 workers either suspended or on forced leave.

The only positive note came from vehicle exports, which grew by 24.7 percent over 2015.

"We have the best month of December in the history of exports, with 62,491 units sent to other countries," said Megale.

For 2017, Anfavea predicts 4 percent growth for internal sales, a 7.2 percent rise in exports and an 11.9 percent spike in vehicle production.

Should these predictions come true, 2017 would be the first year of recovery for the Brazilian automotive sector after four consecutive years of contraction. Enditem