Aftermarket Summary
According to Roland Berger Consulting company, the aftermarket sector is expected to generate R$ 142 billion (US$ 40.6 billion) in the period 2018-2020, including services, sales of parts, tax collections, margins and operational costs in the automotive repair chain. Sales of automotive parts in 2018 are expected to reach R$ 89.4 billion (US$ 25.5), of which 20% are sales to the aftermarket segment. Brazil’s automobile fleet in 2017 (cars, light trucks, trucks, heavy duty and buses) was 43.3 million units.
The receptivity of imported parts for the aftermarket depends mostly on prices. There is a growing number of distributors of imported parts and accessories. Internet sales of automotive parts are also increasing in Brazil. According to e-Bit, sales of automotive accessories in the first half of 2018 were R$ 483 million (UDS$ 138 million), an increase of 7.5% compared to the same period in 2017.
Electric Vehicles Summary
According to ANFAVEA, the domestic sales of electric and hybrid automotive vehicles reached 3,296 units in 2017, and currently represent 0.2% of total vehicles sold in Brazil.
The Brazilian Government has taken several actions to reduce the prices of electric and hybrid vehicles, in order to create local demand and investments.
In November 2018, the automotive program “Rota 2030” reduced the tax on industrial products (IPI) from 25% to rates that range from 7% to 18%, depending on the model’s energy efficiency and weight.
Government measures to stimulate electric vehicles, included import duty exemption on electric and hybrid cars, and reduction or exemption of the Motor Vehicle Property Tax - IPVA in some Brazilian states. Tax reduction will increase local demand, imports and local investments by the automobile makers established in Brazil.
In fact, some initiatives in the electric / hybrid vehicle industry are taking place in Brazil: In March 2018, Toyota displayed the prototype of the first ethanol fueled hybrid – electric car in the world, a Prius model that was developed in Brazil. In addition, BYD, started its first electric bus plant in the state of Sao Paulo. Volkswagen produces electric trucks in its MAN Latin America plant in Resende, Rio de Janeiro, with electric traction developed by Eletra and electric motors produced by WEG, two Brazilian manufacturers.
There are a number of organizations doing research projects, as well as technical committees working on
norms and regulations to create the infrastructure for the industry in the country.
Heavy Duty Market Summary
Domestic truck sales in 2018 are estimated at 86,500,000 units, a 43% increase over 2017, after three years of decreased sales. About 70% of the cargo transportation in Brazil is made by heavy trucks, so the sector was negatively impacted by the recent economic recession in Brazil. The Brazilian truck fleet is of 2 million trucks, whose average age is 11.7 years. The truck models in Brazil are predominantly European, so U.S. parts and accessory suppliers have some disadvantage in this market.
Best Prospects
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Best Prospects for U.S. Exports