- During the first half of 2014, car production (PC + LCVs) in Brazil fell by 16.8% compared to the same period last year. Production stood at 1 566 000 units and now ranks Brazil just behind Mexico (1 598 000 units). All manufacturers are affected except Hyundai (+36% reaching 86 000 units) and Renault-Nissan (+15% reaching 108 000 units), while Toyota stayed stable (58 000 units).

- While Mexican production is mainly driven by exports (83% of production), the drop in Brazilian production is the result of the decline of the local market and the decrease in exports.

- Indeed, in the first half of 2014, vehicle registrations fell by 7.6% to stand at 1 663 000 units.  The low economic growth and rising inflation impacted the market. The arguments advanced by the ANFAVEA (National Brazilian Association of Manufacturers)  on the effects of the World Cup and the number of days worked are however more difficult to measure.

- As for exports, the decline in the Argentine market ( Brazil's first export country) as well as instability in customs agreements between the two countries have also had a negative impact. Hence exports are down 35.4%.

- For the second half of 2014, production forecasts may be better as a result of the entry of new customs agreements between Argentina and Brazil that will improve exports and even more so if the new government's plan to boost the purchase of vehicles produced in Brazil meets the aimed success. This plan provides for the establishment by public banks of credits and loans For the acquisition of locally produced vehicles (which may cover up to 90% of the price).

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