Brazil auto sales to fall 10% in 2016 – UBS

Al Greenwood

13-Oct-2015

HOUSTON (ICIS)–Brazilian light-vehicle sales will likely continue their decline in 2016, falling by 10% year on year, investment bank UBS said on Tuesday.

Truck sales will fall by 25% in 2016, it said.

Sales will still be high enough to ensure that automobile penetration will continue expanding in Brazil, UBS said. However, the rate will slow down.

Meanwhile, bus sales will fall below the level needed for fleet replacement by the end of 2015, it said.

In other news, Brazil produced 166,694 light vehicles in September, down 42% from 286,241 in September 2014, according to the automobile trade group Anfavea. The September figures were the lowest of any month in at least five years.

From January to September, light-vehicle production reached 1,827,206 down 19% from the same time last year and 32% from the peak reached in 2013, according to Anfavea.

The following chart shows Brazilian automobile production statistics since January 2011.

source Anfavea

Source: Anfavea

The automotive industry is a major global consumer of petrochemicals which contribute more than a third of the raw material costs of an average vehicle. ICIS tracks the movement of petrochemical raw material costs in auto production both globally and regionally with the weighted ICIS Basket of Automotive Petrochemicals (IBAP).

ICIS has launched a Global Automotive report covering the major automotive chemicals markets, and auto-industry and macroeconomic trends. For more information on the report and details on how to subscribe, please email automotive@icis.com.

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