I swear high brains

Increased interest rate may result in fewer cargo vehicles manufactured in Brazil this year, said the president of (National Association of Motor Vehicle Manufacturers), Igor Calvet, 40.

BC (Central Bank) to Selic, a basic interest rate in Brazil, to 14.75% per year on May 7, 2025. The country in 3rd global place in the real interest rate. Selic’s expectation is expected in June.

Calvet said truck sales focus on companies with large fleets. The current level causes interest on truck selling at least 20% per year. “Who buys a truck, 5 years from now, when finished paying, will have disbursed the equivalent of 2 trucks. [A empresa] Make the accounts and advance the investment”He said.

He said he is not against BC monetary policy to reduce inflation. “What worries us is the intensity”He said.

Watch the interview (32min49s):

Truck factories in Brazil 11,000 units left April 2025. This is 6% less than in March. Read that of the May Charter of May (PDF – 1 MB).

There was reversal of discharge in production in the previous months. The April drop made the total sales in accumulated from January to April to decrease 0.4% over the same period of 2024.

Calvet stated that the trend is the drop in production is accentuated by Selic’s current level. He said truck sales depend on the expectation of high GDP (Gross Domestic Product) high period for a long time. “If the economy grows, the truck market will most likely“, These.

Brazil’s GDP 3.4% in 2024. The tendency is to challenge. High GDP market analysts of 2.14% in 2025 and 1.7% in 2026.

In the case of cars, there was an increase of 21.4% in April 2025 production compared to March. Sales in the domestic market grew 7.4%. Exports increased 27.3%.

Below, excerpts from the interview:

• productiono – “Brazil even market more than 3.8 million vehicles [por ano] 13 years ago. Probably we will grow 7% in the market, [com] Something around 2.8 million units ”;
• import – “They have been growing. Today [tem origem no exterior] 1 out of 5 vehicles. We are not contrary to imports. Play a fundamental role in complementing production ”;
• electric – “All companies that are in Brazil today already have [veículos desse tipo] in your portfolio. Electrification is a worldwide trend. […] The input unbalanced in the market of these vehicles is that causes distortions. […] Up to 2040, 80% of lightweight light vehicles will have some level of electrification: purely electric, plugin or hybrid ”;
• investment – “In 2024, the automotive sector installed in Brazil announced R $ 130 billion in investments. Much of this value was to do […] with new technologies to reach Brazil. Right now […] We have an imbalance in imports. We are in the struggle for the investments already announced […] are realized in the country ”;
• regulation – “The import tax rate for vehicles is 35%. In 2015, the government zeroed this rate just for the electrified ones in order to make this market emerge. Now, after 10 years, it is 18%. We hope to return to 35%. They have come to reduce tax reduction ways to produce that are not so sophisticated, [como] o CKD […], which is to gather parts in sets. These are things with little added value. [Defendemos] that the Brazilian government […] Do not accept that this has tax reduction ”;
• exports – “Our participation has fallen in the last 10 years while Chinese companies have grown in Latin America because they came with a lot of desire to access new markets […]. Last month, Argentina corresponded to over 40% of our exports. It is very relevant for us to cultivate [uma] close and deep relationship with Argentina ”;
• US Tariffs – “Brazilian shipments today do not go to the United States […]but the automotive sector is global. He can […] disarm. [Com] Barriers against Mexico, we can have a deviation from production to markets like Brazil. We have a deal with them free trade ”;
• China – “In the automotive sector, it has a capacity of 50 million units [por ano] and a 27 million market […]. The ability to grow [é] very big ”.