Brazil's vehicle production increased by 2 percent in 2019, reaching 2.94 million units, the country's Association of Motor Vehicle Manufacturers (Anfavea) announced on Tuesday.

However, the figure, marking the third consecutive annual rise, is still below the 2013 record of 3.7 million units.

Meanwhile, vehicle exports fell 31.9 percent as Argentina, the main importer of Brazilian vehicles, is struggling in an economic crisis. "The impact of the Argentinian crisis is significant," said Anfavea President Luiz Carlos Moraes.

Last week, car dealership association Fenabrave announced that sales of new vehicles in Brazil rose 8.7 percent last year from 2018.

Employment in the automotive sector fell 3.7 percent to 125,600 in 2019, Anfavea said. The decrease was attributed to both the fall in exports, which led manufacturers to adjust the production, and to the closure of a large Ford plant in Sao Paulo state.

For 2020, Anfavea forecasted a rise of 7.3 percent in production and 9.4 percent in vehicle sales. However, the country's vehicle exports are expected to decrease by 11 percent as there is still no end in sight for the Argentinian crisis.