Brazil has a robust automotive industry, which consists of 31 manufacturers of automobiles, trucks and buses and 616 automotive parts. In 2017, Brazil was ranked the world’s eighth largest automobile producer and the only Latin American country among the 10 top manufacturers.
After three years of successive decreased domestic sales (2014, 2015 and 2016), Brazil’s automobile industry showed some recovery in the last two years. Production of automobiles (cars, light trucks, trucks and buses) was 2,699,672 units in 2017, an increase of 25% over the previous year, and 2,948,500 units in 2018, 9.2% over 2017. Domestic sales also grew to 2.239.403 units in 2017 and 2,562,800 in 2018, but still much lower than record level of 3,800,000 of 2012.
In 2018, the automobile makers in Brazil imported 307,400 units from their plants abroad, mostly from Argentina and Mexico, with whom Brazil has trade agreements. Luxury automobile brands are sold in Brazil through exclusive commercial representation. ABEIVA – The Brazilian Association of Imported Automobiles (ABEIVA, http://www.abeiva.com.br), whose membership consists of companies as Jaguar, JAC, Ferrari, BMW, Byd, Chery, Lifan, Geely, Volvo, Suzuki, Rolls Royce, Porsche, Mini, Maserati, Land Rover and Lamborghini. ABEIVA reports that their members sold 37,140 imported models in Brazil in 2018.
The automotive parts industry also had a positive performance in 2018, with estimated sales of R$ 89.4 billion (US$ 25.5),
According to the Automotive Business http://www.automotivebusiness.com.br Investment Report, Caoa-Chery, GM, Toyota, Volkswagen and the truck companies: Iveco, Man Latin America, Mercedes Benz, Scania and Volvo, have investment plans in Brazil of approximately US$ 10.5 billion until 2022 in development of new vehicles and modernization and updates of existing plants.
brazil
Summary
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Market Entry
There are several procedures for importing automotive vehicles in Brazil, including an import license from Brazil’s International Trade Department (DECEX); the “License for Vehicle, Engines and Machines” - LCVM, from Brazil’s Environmental Institute (IBAMA), confirming compliance with emission and noise regulations. Automotive vehicles must comply with the emission standards established by PROCONVE’s L6 (for automobiles) and P-7 (heavy vehicles), which corresponds to the Euro V standards.