Automotive industry in Brazil

The Brazilian automotive industry competed with other Latin American ones (Mexico and Argentina) comparably till 1960, but had two jumps then, making Brazil as a regional leader to first and one of the World's leaders moreover. Near the end of the 1970s new capacities were built by US and Germany. In addition to available and annual production, which exceeded one million and provided world's 10th place for country. After some decrease near 1990, the new and more strong growth by help of same foreign players plus Japan and France allows Brazil to beat such old auto makers as Belgium, United Kingdom, United States, Canada, Russia, Spain, France and annual production exceeded 3,7 million vehicles in 2013 seventh largest in the World, although they have fallen substantially more recently.

The Brazilian industry is regulated by the Associação Nacional dos Fabricantes de Veículos Automotores (Anfavea), created in 1956, which includes automakers (automobiles, light vehicles, trucks and buses) and agriculture machines with factories in Brazil. Anfavea is part of the Organisation Internationale des Constructeurs d'Automobiles (OICA), based in Paris.

Most of large global companies are present in Brazil; such as BYD, Fiat, Volkswagen Group, Ford, General Motors, Nissan Motors, Toyota, MAN SE, Mitsubishi, Mercedes-Benz, Renault, Honda, Hyundai, Kia, Volvo, BMW, Subaru, Chery, Geely, JAC Motors, Lifan, Peugeot, Porsche, Audi, Citroën, Jeep, Land Rover, Mini, Lexus, etc., and also the emerging national companies such as Troller, Marcopolo S.A., Agrale, Randon S.A., Excalibur etc., some of them traditionally produces the modern equipped replicas of oldtimers. In the past there were national brands such as FNM(Fabrica Nacional de Motores), DKW Vemag and Gurgel.

History

The first Brazilian automotive industry was the work of Henry Ford, who started the Brazilian subsidiary of Ford Motor Company in 1919, assembling Model T cars and TT trucks in São Paulo. In 1921 Ford opened its own production facility, known as Solon Plant. Ford was followed by General motors in 1926 with the assembly of the first Chevrolet cars in São Paulo. [Sydney A. Latini, A Implantação da Indústria Automobilística no Brasil, Editora Alaúde, 2007, p. 92]

In 1956, in the city of Santa Bárbara d'Oeste (São Paulo), the Romi-Isetta, an early Brazilian car, was first produced. In 1958, Toyota started to produce its famous Land Cruiser. In 1959, in the municipality of São Bernardo do Campo, the first Volkswagen factory was built. It started manufacturing the Kombi, which preceded the famous Beetle (known in Brazil as Fusca). At the same time, a Brazilian entrepreneur, Mr. Sebastiao William Cardoso, started producing an electrical small jeep called Tupi. In 1967, Puma began selling sports cars.

Chevrolet and Ford started manufacturing trucks in 1957 and work vehicles and automobiles in Brazil in the 1960s. The Italian giant Fiat established its first factory in Brazil in the 1970s, and Mercedes Benz started to produce trucks and buses during the 1950s, and eventually opened an automobile factory in 1998.

These companies dominated the Brazilian market until the middle 1990s when the Brazilian market was finally opened to imports. In the 1990s, more auto companies settled and opened factories in Brazil, including: Nissan, Renault, Peugeot, Citroën, Honda, Hyundai, Mitsubishi, Chrysler and Audi.

Currently, the most successful genuine Brazilian auto company is Troller, with its T4 and Pantanal models. It sells all over Latin America and Africa. In the last few years, the Brazilian auto industry has grown quickly, attracting investments from the main global automakers. In 2007, Brazilian production grew 14% compared to 2006 figures, reaching more than 3 million vehicles.

Since 2008 Brazil has passed France and became highest achieved world's sixth largest producer but then was beaten by India in 2011 and slightly down to 7th place.

In October 2012, the Inovar-Auto program was approved by decree with the theoretical goals of encouraging automakers to produce more fuel efficient vehicles and investing in the national automotive industry, by managing taxation exceptions (IPI = tax over industrialized product). However, the program has received criticism, especially of protectionism. Recently, Brazil lost a WTO dispute against tax advantages and illegal practices of protectionism.[1]

Historical production by year
Year Data 0—1 mln 1—2 mln 2—3 mln 3—4 mln
1960133,000  
1970416,089  
19801,165,174  
1990914,466  
20001,681,517  
20052,530,840  
20062,611,034  
20072,970,818  
20083,220,475  
20093,182,617  
20103,381,728  
20113,406,150  
20123,402,508  
20133,712,380  
20143,364,890  
20152,429,463  
20162,157,379  

Manufacturers

Current

Local owned

Bus & Coach manufacturers

Foreign owned

Here's a link to a map containing all plants currently in Brazil:

Former

Local manufacture encouraged

Brazil has a 35% Tariff on imported Cars.[2]

See also

References
  1. Resaffa Nogueira Martins, Henrique. "The Brazilian Inovar-Auto Program and the WTO Dispute". ResearchGate. doi:10.13140/RG.2.2.25878.14407.
  2. https://www.smh.com.au/politics/federal/australias-car-tariffs-among-worlds-lowest-20140212-32iem.html
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