The Brazil government announced June 29 the new Safra Plan for 2022/2023 with a total of R$ 340 Billion (US$ 65 Bi) to fund business related to Agriculture, including Agricultural Machines and Trucks for product transportation. The amount is 36% higher than the previous year plan.
Source: Automotive Business Read The Article
PSR Analysis: While the volume of funds is higher, the interest rates are also higher. In addition, the prices of agricultural supplies are higher than in the previous cycle. Agricultural Machines should maintain its high production and sales trend while Trucks should grow due to pre-buy caused by Proconve P8 (Equivalent to Euro 6) by January 2023. PSR
