UPDATE 1-Brazil auto production to grow 2.2% in 2023, sales seen up 3%

Recasts with 2023 forecasts, adds quotes

SAO PAULO, Jan 6 (Reuters) - Brazil's auto industry production is expected to rise 2.2% in 2023 from last year, reaching 2.42 million units on an improving scenario for the semiconductor shortage, automakers association Anfavea said on Friday.

Auto sales in the South American country, meanwhile, are set to increase 3% this year to 2.17 million units, the association added, after releasing its final
data for 2022
.

"The semiconductor issue is smaller this year," Anfavea's head Marcio de Lima Leite said, after an autoparts shortage capped Brazil's auto production in earlier years.

"Now we must work for demand to grow," he added.

Earlier in the day, Anfavea had reported that Brazil's auto production grew 5.4% in 2022 from the previous year to 2.37 million vehicles, but sales slipped 0.7% to 2.1 million.

Auto exports, which rose 27.8% in 2022, are set to fall 2.9% to 467,000 units this year.

(Reporting by Alberto Alerigi Jr, Editing by Isabel Woodford)

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