Brazil automotive industry 2017The Brazilian sector is regulated by the Associação Nacional dos Fabricantes de Veículos Automotores (Anfavea), produced in 1956, which involves automakers (automobiles, light cars, trucks and buses) and agriculture machines with factories in Brazil. With a population of more than 210 million people, Brazil is the biggest fleet marketplace in South America. The Brazilian market continues to be very competitive, and all automotive companies are employing a selection of economic incentives to defend and bolster industry shares. 1 optimistic aspect for future fleet sales in Brazil is the massive interest from international investors seeking for new projects. Brazil’s tremendous infrastructure demands, indirectly translates into an uptick in truck and gear purchases amongst subcontractors.

The consultancy Carcon LMC estimates that idleness will be a lot more than 40% this year, taking into account the production possible of 6.5m units in South America. The predicament is set to worsen in 2015, when inactivity might account for about 44% of capacity. Thereafter, utilisation should enhance to a healthier percentage for the business.

Whilst 2015 is anticipated to be period of adjustment, development is anticipated to recover from 2016. In spite of the weak performance of the Brazilian automotive business in 2014, there is excellent prospective for the future. At present, the nation has five.1 people per car – a very low rate compared with neighbouring Argentina, which has about 3.5 individuals per vehicle. To reach this level, we would want to add 20m cars to the national fleet,” estimates Megale, … READ MORE ...