en.Wedoany.com Reported - Brazil's auto parts exports to Argentina and the U.S. continue to decline, while its purchases from China are expanding. In the first half, Brazil's exports to Argentina and the U.S. fell by 22.7% and 10.4%, respectively, while imports from China grew by 25% during the same period.

Brazil's auto parts sales to Argentina dropped from $1.56 billion in the same period last year to $1.2 billion; exports to the U.S. fell from $632.3 million to $566.5 million. These declines were partially offset by growth in other markets: exports to Mexico reached $403.9 billion, up 14.9%; exports to Colombia totaled $143.42 billion, up 36.6%.

Overall, Brazil's total auto parts exports in the first half amounted to $3.8 billion, down 5.5% year-on-year. The Brazilian Auto Parts Industry Association (Sindipeças) pointed out in its monthly trade balance report that Argentina is the main factor behind the weak export performance. The association stated that Argentina accounts for about 30% of Brazil's auto parts exports, and its 22.7% reduction in purchases aligns with the country's 19.3% decline in production, reflecting the impact of factors such as the Argentine government's trade liberalization policies and currency appreciation.

The association noted that South America accounts for half of Brazil's auto parts exports, making the region's performance decisive for the overall industry results. In the first half, sales to South America fell by 9.1%, mainly due to Argentina's impact, while other markets performed well: exports to Peru grew by 87.5%, to Colombia by 36.6%, and to Paraguay by 23.9%.

With exports declining and imports stable, the auto parts trade deficit grew by 4% in the first half, rising from $7.43 billion in the same period last year to $7.75 billion.