High interest, pricey parts hold back car production in Brazil
Costly credit is making an impact on the sale and production of vehicles in Brazil. However, as car prices have skyrocketed in the last few years, the market should not see a recovery any time soon even if interest rates are lowered, experts heard by Agência Brasil argue.“What we’ve just witnessed again was the brutal elevation in car prices dictated by the surge in components and semiconductors, currency devaluation, and even by the inflation prevailing in recent years. Back in 2021, it brought us this soaring rise in prices, which was not accompanied by a growth in society’s purchasing power,” Getulio Vargas Foundation Professor Antônio Jorge Martins remarked.As reported this week by national vehicle association Anfavea, car production saw an eight-percent increment in the first quar...