Truck production in Brazil in January was 4,049 units vs. 14,614 units in December per Anfavea (the association that represents the automakers installed in the Brazil) monthly
PSR Analysis: This decline was expected due to the introduction of PROCONVE P8, the regulation in line with Euro VI, that reduces the toxic gas emission limits and therefore increases the complexity and the price of new trucks.
Under that regulation, OEMs have the right to sell Trucks at PROCONVE P7 (Euro V) produced in 2022 until March 31, 2023. This caused a pre-production and inventory increase to sell trucks with lower price at the beginning of 2023.
The Anfavea forecast points to a reduction in MHV production from 192,000 to 154,000, but their calculation on Sales, Exports and Stock does not match. Subscribers of Power Systems Research data and intelligence can see a well-balanced forecast, considering different stock level by subsegment of GVW. PSR
Fabio Ferraresi is Director, Business Development-South America, for Power Systems Research
