Automotive Opportunities

An Expert's View about Automobile in Brazil

Last updated: 17 Jun 2011

Brazil is the 6th largest producer of vehicles in the world. There are 25 automotive plants, 13 agricultural machinery plants and 12 engine & components plants, with a total of 50 industrial units established in 8 States.

Sector briefing Automotive Opportunities in Brazil Why Brazil? th Brazil is the 6 largest producer of vehicles in the world. There are 25 automotive plants, 13 agricultural machinery plants and 12 engine & components plants, with a total of 50 industrial units established in 8 States. In addition, there are 500 autoparts manufacturers with 650 plants and 4 thousand dealerships. The whole chain employs 1.5 million people. Brazil is a major manufacturer of small and medium size vehicles. The current fleet amounts to 30 million units for a 190 million population. In Brazil, there is an average of 1 vehicle for every 7 people. The Brazilian automotive industry has 80% of ?The Brazilian automotive market share in South America and represents 5% of the Brazilian GDP. industry has 80% of market share in South America and Find general information on the Brazilian represents 5% of the market conditions on UKTI?s website. The Doing Business Guide for Brazil gives Brazilian GDP.? an overview of Brazil?s economy, business culture, potential opportunities and an introduction to other relevant issues. UK Trade & Investment Sector briefing: Automotive opportunities in Brazil 2010, sales reached almost 2.9 million units, Opportunities representing 86.4% of domestic market share. Automotive: Low carbon technologies, Volkswagen was the first OEM to launch the engineering services (software, consultancy, flex fuel technology in March 2003, and it was etc), lightweight components and advanced soon followed by General Motors, Fiat and materials. Ford. However, most of the OEMs (Renault, Peugeot, Citroen, Honda, Mitsubishi and Motorsport: Major opportunities in Stock Car, Toyota) are currently using the flex technology. GT3 and Rally categories. Components and The target is to incorporate the flex fuel accessories (seat belts, seats, fire extinguisher, technology in their entire lines as quickly as electronic instrumentation, telemetry), special possible. components, green technologies and fuels. Tuning: Accessories and performance kits. Autoparts Segment Construction: Construction equipment used in According to Sindipeças (Brazilian Component the Heavy Construction, Oil & Gas and Mining Manufacturers Association), the autoparts industries. sector's turnover reached US$ 49 billion in 2010. The forecast is to reach R$ 53 billion in Characteristics of the market 2011, an increase of 8.2% compared to last year. Automotive production used to be concentrated The industry invested US$ 1,5 billion in 2010, in São Paulo and Minas Gerais. However, this which represents an increase of 137.7% scenario has changed. New areas of compared to 2009. importance to the industry were created such as Paraná, Bahia, Rio Grande do Sul, Rio de Due to the heavy taxation applied to locally Janeiro, Ceará and Goiás. FIAT is considering produced autoparts, OEMs have been importing opening its second car manufacturing plant in more components than buying from domestic Pernambuco state. The distributor network has market. In the first bimester of 2011, the been modernised, with more up to date segment registered a deficit of US$ 715.4 buildings and facilities, a more professional million, an increase of 2% compared to the approach to its organisation and more same period last year. In order to change the sophisticated technology. current scenario and increase domestic sales, the government will increase import duties to Brazil is also attracting massive overseas 14%, 16% and 18% investments to the industry. Brazilian OEMs will invest US$ 11,2 billion in the market between 2010 and 2012. According to ANFAVEA Construction Equipment (Brazilian Association of Automotive Manufacturers), this volume represents an The leading manufacturers of machines and acceleration of 38% on investments in the utilities for construction belong to the Sector sector, which was US$ 8,1 billion between Chamber of Road Machines of Abimaq 2007 and 2009. (Brazilian Association of Machine and Equipment Industries). This Sector Chamber ANFAVEA states that the sector produced 3.6 has 25 associates who in turn employ 10 million vehicles in 2010, a growth of 14.2% thousand people. All members have their compared to 2009. The Brazilian current industrial plants in Brazil, located in the South production capacity is of 4.3 million units per and Southeast, with special emphasis to the year. states of São Paulo, Paraná, Minas Gerais and Rio Grande do Sul. Flex fuel Vehicles Segment According to Sobratema (Brazilian Association The flex fuel vehicles, which can run on any of Technology for Equipment and mixture of bio-ethanol and gasoline, are rapidly Maintenance), 70,000 units of construction gaining market share. In 2003, when the equipment were sold in Brazil in 2010, an technology was launched, the market share increase of 70.5% compared to 2009. The was 7% with 84 thousand vehicles sold. In forecast is that domestic sales will reach UK Trade & Investment Sector briefing: Automotive opportunities in Brazil 77,000 units in 2011, an increase of 10.3% compared to 2010. The range of equipment are the so-called yellow line ? backhoes, skid-steer tractors, compacting rolls, hydraulic excavators, carrying shovels, power-grading machines, off- road trucks, derricks, cranes and compressors, among other products. If you have any questions on the opportunities above, contact the UKTI Brazil Automotive contacts named in this report. Business opportunities aimed specifically at UK companies are added daily to UKTI?s website. These leads are sourced by our staff overseas in British Embassies, High Commissions and Consulates, across all sectors and in over 100 markets. You can be alerted to Brazil/automotive opportunities on a regular basis by registering on the UKTI UKTI?s business opportunities service. UK Trade & Investment Sector briefing: Automotive opportunities in Brazil SALÃO DAS MOTOPEÇAS (Motoparts Intl Major events and activities Trade Fair) Date: TBC SALÃO DE ACESSORIOS (TUNING) Venue: Expo Center Norte - São Paulo Date: TBC Organiser: Anfamoto Venue: Expo Center Norte - São Paulo Website: Organiser: Megacycle Eventos Website: Find full details of all Brazil automotive events SALÃO DAS DUAS RODAS (Two Wheels on the UKTI website. New export events are Trade Fair) added daily to the site and you can register to Date: 4 ? 9 October 2011 be alerted to them on a daily, weekly or Venue: Parque Anhembi - São Paulo monthly basis. Organiser: MG - Media Group do Brasil Website: UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & SAE BRASIL (Congress and Exhibition) Medium Sized Enterprises (SME's) to attend Date: 4 - 6 October 2011 trade shows overseas. Find out more about Note: annual fair UKTI support for attendance at overseas Venue: São Paulo ? SP events. Organiser: SAE Brasil Website: UKTI contacts FENATRAN (Intl Transport Industry Trade Show) Erika Azevedo Date: 24 ? 28 October 2011 Sector Manager Venue: Parque Anhembi - São Paulo British Consulate-General São Paulo Organiser: Reed Exhibitions Tel: (0055 11) 3094 2748 Website: Email: GP DO BRASIL FORMULA 1 Date: 25 - 27 November 2011 Julie Yang Venue: Autódromo Interlagos- São Paulo Assistant Sector Manager Organiser: International Promotions British Consulate-General São Paulo Website: Tel: (0055 11) 3094 2759 Email: AUTOMEC HEAVY AND COMMERCIAL VEHICLES (Autoparts Intl Trade Fair) Date: 10 ? 14 April 2012 Filipe Gotardi Note: biennial fair Intern Venue: Parque Anhembi - São Paulo - SP British Consulate-General São Paulo Organiser: Reed Exhibition Tel: (0055 11) 3094 1874 Website: Email: M&T EXPO (Intl Fair for Construction and Mining Equipment) Date: 02 ? 06 June 2012 Venue: Expo Imigrantes - São Paulo Organiser: Sobratema Website: SALÃO INTERNACIONAL DO AUTOMÓVEL (Automobile International Show) Date: 10 October ? 21 October 2012 Venue: Parque Anhembi ? São Paulo Organiser: Alcântara Machado Website: UK Trade & Investment Sector briefing: Automotive opportunities in Brazil Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for business in the Brazilian market are advised to you to meet contacts and promote your undertake as much market research and company in the Brazilian market planning as possible in the UK. UKTI?s team in Brazil, with its wide local knowledge and This work is available via our Overseas Market experience, can provide a range of services to Introduction Service (OMIS) a chargeable British-based companies wishing to grow their service which assists British-based companies business in the Brazilian market. wishing to enter or expand their business in overseas markets. This can include: ? Provision of market information To find out more about commissioning this ? Validated lists of agents/distributors work, or accessing other UKTI services and ? Key market players or potential specialist advice, please visit the UKTI website customers in the Brazilian market to find contact details for your local UKTI ? Establishment of interest of such office. contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2011 by UK Trade & Investment. Crown Copyright © You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: This publication is also available from our website at or for more information please telephone +44 (0)20 7215 8000. UK Trade & Investment Sector briefing: Automotive opportunities in Brazil
Posted: 16 June 2011, last updated 17 June 2011

See more from Automobile in Brazil

Expert Views    
Automotive opportunities in Brazil   By UK Trade & Investment
Automotive Opportunities   By UK Trade & Investment
Presenting the contributor