Automotive opportunities in Brazil

An Expert's View about Parts and Accessories for Automobiles in Brazil

Posted on: 1 Sep 2010

Latest overview of market potential for the automotive sector in Brazil including construction equipment and environmentally-friendly technologies.

Sector briefing Automotive Opportunities in Brazil Why Brazil? th Brazil is the 5 largest producer of vehicles in the world. There are 26 automotive plants, 11 agricultural machinery plants and 9 engine & components plants, with a total of 46 industrial units established in 8 States. In addition, there are 500 autoparts manufacturers with 650 plants and 4 thousand dealerships. The whole chain employs 460 thousand people. Brazil is a major manufacturer of small and medium size vehicles. The current fleet amounts to 28 million units. In Brazil, there is an average of 1 vehicle for each 8 people. ?The Brazilian automotive The Brazilian automotive industry has 80% of market share in South America and represents industry has 80% of market 6% of the Brazilian GDP. share in South America and represents 6% of the Find general information on the Brazilian market Brazilian GDP.? conditions on UKTI?s website. The Doing Business Guide for Brazil gives 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 soon followed by General Motors, Fiat and Opportunities Ford. However, most of the OEMs (Renault, Peugeot, Citroen, Honda, Mitsubishi and Automotive: Low carbon technologies, Toyota) are currently using the flex technology. engineering services (software, consultancy, The target is to incorporate the flex fuel etc), lightweight components and advanced technology in their entire lines as quickly as materials. possible. Motorsport: Major opportunities in Stock Car, Autoparts Segment GT3 and Rally categories. Components and accessories (seat belts, seats, fire extinguisher, According to Sindipeças (Brazilian Component electronic instrumentation, telemetry), special Manufacturers Association), the autoparts components, green technologies and fuels. sector's turnover reached US$ 38 billion in 2009. The forecast is to reach R$ 40 billion in Tuning: Accessories and performance kits. 2010, an increase of 5.7% compared to last year. Construction: Construction equipment used in the Heavy Construction, Oil & Gas and Mining The industry should invest US$ 1 billion in industries. 2010, which represents an increase of 11.1% compared to 2009. Characteristics of the market OEMs account for 70% of autoparts? turnover. Automotive production used to be concentrated Due to the heavy taxation applied to locally in São Paulo and Minas Gerais. However, this produced autoparts, OEMs have been importing scenario has changed. New areas of more components than buying from the importance to the industry were created such domestic market. In 2009, Brazil exported US$ as Paraná, Bahia, Rio Grande do Sul, Rio de 7 billion and imported US$ 9 billion. In order to Janeiro, Ceará and Goiás. The distributors change the current scenario and increase network has been modernised, with more up to domestic sales, the industry has been trying to date buildings and facilities, a more reduce taxation by lobbying with Brazilian professional approach to its organisation and government. In the meantime, the forecast for more sophisticated technology. 2010 is to export US$ 7 billion and import US$ 10 billion. Brazilian OEMs will invest US$ 11.2 billion in the market between 2010 and 2012. According Construction Equipment to ANFAVEA (Brazilian Association of Automotive Manufacturers), this volume The leading manufacturers of machines and represents an acceleration of 38% on utilities for construction belong to the Sector investments in the sector, which applied US$ Chamber of Road Machines of Abimaq 8.1 billion between 2007 and 2009. (Brazilian Association of Machine and Equipment Industries). This Sector Chamber ANFAVEA forecasts that the sector will produce has 25 associates who in turn employ 10 3.4 million vehicles in 2010, a growth of 5.4%, thousand people. All members have their compared to 2009 when 3.2 million vehicles industrial plants in Brazil, located in the South were produced. Brazil?s current production and Southeast, with special emphasis to the capacity is of 4.3 million units per 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), 39 thousand units of gaining market share. In 2003, when the construction equipment were sold in Brazil in technology was launched, their market share 2009. The forecast is that domestic sales will was 7% with 84 thousand vehicles sold. In reach 48 thousand units in 2010, an increase 2009, sales reached 2.6 million units, of 24% compared to 2009. representing 88.2% of domestic market share. The range of equipment are the so-called Volkswagen was the first OEM to launch the yellow line ? backhoes, skid-steer tractors, flex fuel technology in March 2003, and it was UK Trade & Investment Sector briefing: Automotive opportunities in Brazil 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 website. More on UKTI?s business opportunities service UK Trade & Investment Sector briefing: Automotive opportunities in Brazil Major events and activities M&T EXPO (Intl Fair for Construction and SALÃO DAS MOTOPEÇAS (Motoparts Intl Mining Equipment) Trade Fair) Date: 02 ? 06 June 2012 Date: 20 - 24 October 2010 Venue: Expo Imigrantes - São Paulo Venue: Expo Center Norte - São Paulo Organiser: Sobratema Organiser: Anfamoto Website: www.mtexpo.com.br Website: www.anfamoto.com.br SALÃO INTERNACIONAL DO AUTOMÓVEL Find full details of all Brazil automotive events (Automobile International Show) on the UKTI website. New export events are Date: 28 October ? 7 November 2010 added daily to the site and you can register to Venue: Parque Anhembi ? São Paulo be alerted to them on a daily, weekly or Organiser: Alcântara Machado monthly basis Website: www.salaodoautomovel.com.br UKTI?s Tradeshow Access Programme (TAP) GP DO BRASIL FORMULA 1 provides grant support for eligible Small & Date: 5 - 7 November 2010 Medium Sized Enterprises (SME's) to attend Venue: Autódromo Interlagos- São Paulo trade shows overseas. Find out more about Organiser: International Promotions UKTI support for attendance at overseas Website: www.intergroup.com.br events. AUTOMEC (Autoparts, Equipment and UKTI contacts Services Intl Trade Fair) Date: 5 ? 9 April 2011 Venue: Parque Anhembi - São Paulo Erika Azevedo Organiser: Reed Exhibitions Sector Manager Website: www.automecfeira.com.br British Consulate-General São Paulo Tel: (0055 11) 3094 2748 SALÃO DE ACESSORIOS (TUNING) Email: erika.azevedo@fco.gov.uk Date: April 2011 www.ukti.gov.uk Venue: Expo Center Norte - São Paulo Organiser: Megacycle Eventos Julie Yang Website: www.salaodeacessorios.com.br Assistant Sector Manager British Consulate-General São Paulo Tel: (0055 11) 3094 2759 SÃO PAULO INDY 300 Email: julie.yang@fco.gov.uk Date: May 2011 www.ukti.gov.uk Venue: Circuito rua Anhembi - São Paulo Organiser: Grupo Bandeirantes Guilherme Pereira Website: www.band.com.br Intern British Consulate-General São Paulo FENATRAN (Intl Transport Industry Trade Tel: (0055 11) 3094 1874 Show) Email: guilherme.pereira@fco.gov.uk Date: 24 ? 28 October 2011 www.ukti.gov.uk Venue: Parque Anhembi - São Paulo Organiser: Reed Exhibitions Website: www.alcantara.com.br SALÃO DAS DUAS RODAS (Two Wheels Trade Fair) Date: 4 ? 9 October 2011 Venue: Parque Anhembi - São Paulo Organiser: MG - Media Group do Brasil Website: http://www.salaoduasrodas.com.br/ 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 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Automotive opportunities in Brazil
Posted: 01 September 2010

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Automotive opportunities in Brazil   By UK Trade & Investment