Auto manufacturers in Brazil have apparently reached a “production ceiling” after five months in 2021, production is now below pre-pandemic levels owing to a shortage of semiconductors, said South American automakers association, National Association of Automotive Vehicle Manufacturers (Anfavea).
Challenges of semiconductor shortages are being faced across the globe but concentrated in Asia. But recently, Brazil has started experiencing these issues. US and European countries countered the shortages by ramping local production to suffice domestic demand.
Brazilian automakers association Anfavea expects the shortage of semiconductors to extend until the first few months of 2022. Overall production will continue to be impacted following temporary short and long stoppages by automakers. They emphasise that the semiconductor shortage would affect not just the automotive but other sectors too. A single auto vehicle uses up to 600 semiconductors, notes Anfavea.
In May, Brazil’s auto production stood at 192,800 units, up 1pc from April. Compared to May 2020, auto production is up by 55pc. Sales jumped up by 7.7pc to 188,700 vehicles in May. Anfavea is maintaining their 15pc increase in auto sales projection and 25pc jump in production levels for the year.