Industry Research Report on the Automotive Industry in Brazil¶

Value Chain Outline¶

The automotive industry in Brazil is a complex and significant sector of the national economy, encompassing a comprehensive value chain that ranges from raw material extraction to end-of-life vehicle management. This chain can be broadly segmented into several key steps, each with its distinct activities, types of players, and key participants. The sector is crucial for the Brazilian economy, contributing significantly to the industrial GDP and generating a substantial number of direct and indirect jobs. Brazil holds a notable position globally in both vehicle production and market size.

Identification and description of each step in the value chain:

The automotive value chain in Brazil can be broken down into the following key steps:

Upstream/Supply Chain (Antes da Fábrica): This initial step involves the sourcing and processing of raw materials and the manufacturing of various components and systems that will be used in vehicle production.
Manufacturing/Assembly (Fábrica): This is where vehicles are actually produced, involving the assembly of the numerous parts and components into finished automobiles, trucks, buses, and agricultural/road machinery.
Distribution and Sales (Distribuição e Vendas): This step focuses on moving the finished vehicles from the manufacturing plants to the end consumers through various channels.
Post-Sales/Aftermarket (Pós-Venda/Reposição): This crucial stage involves all activities related to vehicle maintenance, repair, and the supply of replacement parts and accessories after the initial sale.
Ancillary Services (Serviços de Apoio): These include essential services that support the entire value chain, such as logistics, financial services, technology development, and research and development.

Identification and description of segments for each step of the value chain:

Each step of the value chain comprises different segments:

1. Upstream/Supply Chain:

Raw Material Suppliers: Companies that provide basic materials like steel, aluminum, plastics, rubber, and electronic components.
Component and Parts Manufacturers (Autopeças): This is a vast segment responsible for producing a wide array of parts, from individual components to complex systems. It's often categorized into tiers based on their direct relationship with the assemblers (OEMs). Tier 1 suppliers provide complete systems or modules directly to the assembly plants, while Tier 2 and Tier 3 suppliers produce components for the Tier 1 companies. This segment includes manufacturers of engines, transmissions, chassis, braking systems, suspension systems, electrical systems, and electronic components.

2. Manufacturing/Assembly:

Vehicle Manufacturers (Montadoras): These are the companies that design, assemble, and market the final vehicles. In Brazil, this includes manufacturers of light vehicles (passenger cars and light commercial vehicles), heavy vehicles (trucks and buses), and agricultural and road machinery.

3. Distribution and Sales:

Vehicle Distributors: Companies responsible for the logistical flow of vehicles from factories to dealerships and other points of sale.
Dealerships/Concessionárias: The primary points of sale for new vehicles, also offering related services like financing and insurance.
Used Vehicle Market: Platforms and dealerships specializing in the sale of pre-owned vehicles.

4. Post-Sales/Aftermarket:

Auto Parts Distributors: Companies that distribute replacement parts and accessories to the aftermarket.
Repair and Maintenance Shops (Oficinas Mecânicas): Provide vehicle repair and maintenance services.
Accessory and Customization Providers: Businesses offering vehicle accessories and customization services.

5. Ancillary Services:

Logistics Providers: Companies specializing in the transportation, warehousing, and management of vehicles, parts, and materials throughout the value chain.
Financial Services: Institutions offering financing, insurance, and leasing options for vehicles and businesses in the sector.
Technology and Software Providers: Companies developing and implementing technologies for manufacturing, vehicle systems, sales, and aftermarket services.
Consulting and Research Firms: Providing market analysis, strategic planning, and technical expertise.
Government and Industry Associations: Entities that regulate, promote, and provide data on the automotive sector (e.g., Anfavea, Sindipeças, Fenabrave).

List of types of players in each segment:

Raw Material Suppliers: Mining companies, chemical companies, metal processing companies, electronics manufacturers.
Component and Parts Manufacturers (Autopeças): Multinational Tier 1 suppliers, national component manufacturers, specialized parts producers (e.g., tires, batteries, glass).
Vehicle Manufacturers (Montadoras): Global automotive grupos with local manufacturing plants, specialized heavy vehicle manufacturers, agricultural and road machinery manufacturers.
Vehicle Distributors: Large logistics operators specializing in vehicle transport.
Dealerships/Concessionárias: Authorized dealerships representing specific vehicle brands, multi-brand dealerships.
Used Vehicle Market: Online platforms, physical dealerships, individual sellers.
Auto Parts Distributors: National distributors, regional distributors, specialized parts distributors.
Repair and Maintenance Shops: Authorized service centers (linked to dealerships), independent workshops, fast-lube centers, specialized repair shops.
Accessory and Customization Providers: Specialized stores, online retailers.
Logistics Providers: Integrated logistics companies, specialized automotive logistics operators, transport companies.
Financial Services: Banks, captive financial arms of automakers, insurance companies, consortium administrators.
Technology and Software Providers: Software development companies, hardware manufacturers, IT service providers, companies specializing in automation and Industry 4.0 solutions.
Consulting and Research Firms: Management consultants, market research firms, engineering consultancies.
Government and Industry Associations: Ministries, national development banks, automotive industry associations (e.g., Anfavea, Sindipeças, Fenabrave).

Detailed description of the main activities within each segment:

Raw Material Suppliers: Extraction of minerals, production of metals (steel, aluminum), manufacturing of plastics, rubber, and electronic components. This segment focuses on providing the basic inputs required by the automotive industry.
Component and Parts Manufacturers (Autopeças): Design, engineering, manufacturing, and assembly of individual parts and complex systems (e.g., engines, transmissions, electronic modules). Activities include machining, stamping, molding, electronic assembly, and quality control.
Vehicle Manufacturers (Montadoras): Vehicle design and engineering (often globally coordinated with local adaptation), procurement of parts and components from suppliers, assembly line operations, painting, quality testing, and final vehicle inspection. This includes the manufacturing of different vehicle types like passenger cars, light commercial vehicles, trucks, buses, and agricultural/road machinery.
Vehicle Distributors: Transportation of vehicles from manufacturing plants or ports to distribution centers and dealerships, vehicle storage and inventory management, and logistical planning.
Dealerships/Concessionárias: Vehicle sales (new and used), customer relationship management, providing financing and insurance options, and often operating service centers for maintenance and repair.
Used Vehicle Market: Procurement, inspection, reconditioning, marketing, and sale of pre-owned vehicles.
Auto Parts Distributors: Purchasing parts from manufacturers, warehousing and inventory management, sales and distribution to repair shops and retailers, and logistics to ensure timely delivery.
Repair and Maintenance Shops (Oficinas Mecânicas): Diagnosing vehicle problems, performing scheduled maintenance, repairing mechanical and electrical systems, bodywork and painting, and replacing parts.
Accessory and Customization Providers: Sourcing and selling vehicle accessories, installing accessories, and performing vehicle modifications.
Logistics Providers: Managing the flow of materials, components, and finished vehicles; warehousing, transportation (road, rail, sea), supply chain optimization, and implementing technology for tracking and efficiency.
Financial Services: Offering loans and leasing for vehicle purchases, providing insurance products (auto, credit), managing consortiums, and offering financial solutions for dealerships and businesses in the sector.
Technology and Software Providers: Developing software for vehicle design and manufacturing (CAD/CAM), enterprise resource planning (ERP) systems, customer relationship management (CRM) systems, telematics and connectivity solutions, and digital tools for sales and aftermarket.
Consulting and Research Firms: Conducting market analysis, providing strategic recommendations, operational efficiency consulting, and technology assessments.
Government and Industry Associations: Developing and enforcing regulations, implementing industrial policies and incentive programs (e.g., Rota 2030, Mover), collecting and disseminating industry data, promoting exports, and representing the interests of associated companies.

List examples of key players with detailed profiles:

Vehicle Manufacturers (Montadoras - Light Vehicles):
- Fiat (Stellantis): Part of the Stellantis group. Fiat has a significant manufacturing presence in Brazil and is a market leader in sales volume. They have announced substantial investments in new products and bio-hybrid technology. Key models include the Fiat Strada and Argo. [Value Chain Context]
- Volkswagen: German multinational with a significant manufacturing footprint in Brazil. Strong sales performance with models like the Polo and T-Cross. Investing in decarbonization, hybrids, EVs, and total flex vehicles. [Value Chain Context] Volkswagen Caminhões e Ônibus is also a major player in the heavy vehicle segment.
- General Motors: American multinational operating primarily under the Chevrolet brand in Brazil. The Onix and Tracker are top-selling models. Investing in capacity improvements, production technology, and hybrid-flex vehicles. [Value Chain Context]
- Hyundai: South Korean multinational with manufacturing in Brazil and a partnership with the Caoa group. Known for models like the HB20 and Creta. Recently restructured its partnership with Caoa. [Value Chain Context] Hyundai Mobis is also a global supplier of automotive parts.
- Toyota: Japanese multinational with multiple production facilities in Brazil. Focusing on hybrid-flex vehicles. Key models include the Corolla, Corolla Cross, and Hilux. Announcing significant investments until 2030. [Value Chain Context] Toyota Empilhadeiras is present in the market for material handling equipment. [Value Chain Context]
- Renault: French multinational with a manufacturing plant in Brazil. Gained market position in 2024 with models like the Kardian. Investing significantly in the region and has a partnership with Geely. [Value Chain Context]
- Jeep (Stellantis): American brand part of Stellantis, with a manufacturing presence in Brazil. Popular models include the Renegade and Compass. Part of Stellantis' investment plans. [Value Chain Context]
- Honda: Japanese multinational with a manufacturing plant in Brazil. Gained market position in 2024 with models like the HR-V. [Value Chain Context]
- Nissan: Japanese multinational with manufacturing in Brazil. The Kicks is a best-selling model. Investing in the country and active in digital communication. [Value Chain Context] Nissan has a complete production cycle at its Resende complex.
- BYD: Chinese multinational rapidly expanding in Brazil, particularly in electric and hybrid vehicles. Announcing substantial investments for a new manufacturing complex. [Value Chain Context, 3]
- GWM (Great Wall Motors): Another Chinese player focusing on electric and hybrid vehicles. Also investing in local production.
Vehicle Manufacturers (Montadoras - Heavy Vehicles):
- Volkswagen Caminhões e Ônibus (VWCO): Leader in the Brazilian truck market.
- Mercedes-Benz: Significant manufacturer of trucks and buses.
- Scania: European manufacturer with a presence in the heavy vehicle segment.
- Volvo: Major global manufacturer of trucks, buses, and construction equipment with operations in Brazil.
- Iveco: Manufacturer of commercial vehicles.
- DAF: Dutch manufacturer of heavy trucks, part of the American group Paccar, with a factory in Brazil.
- Agrale: Brazilian manufacturer of buses and trucks.
Vehicle Manufacturers (Máquinas Agrícolas e Rodoviárias):
- Beltz: Brazilian company specializing in agricultural and road equipment.
- Grupo AIZ (Mega Pesados): Deals with the sale of implemented trucks, agricultural tractors, heavy machinery, and manufacturing road implements.
- Volvo: Also a producer of construction equipment.
- New Holland Agriculture/Construction: Manufacturers of agricultural and construction machinery.
- Case IH: Manufacturer of agricultural machinery.
- Massey Ferguson: Manufacturer of agricultural machinery.
- JCB: Manufacturer of construction equipment.
- Randon: Manufacturer of road implements.
- KUHN Brasil: Provides agricultural machinery and implements.
- Vicon: Brazilian company producing agricultural equipment.
- Acton: Leader in agricultural transport equipment.
- GTM: Specializes in cargo handling equipment.
- Tritucap (Petrotec): Manufacturer of equipment for civil construction now also in the agricultural area.
Component and Parts Manufacturers (Autopeças):
- Bosch: Major global Tier 1 supplier.
- ZF: Global supplier of automotive driveline and chassis technology.
- Continental: Global technology company and supplier of automotive components.
- Denso: Japanese global automotive components manufacturer.
- Hyundai Mobis: Global automotive parts company.
- DS Tecnologia Automotiva: Brazilian manufacturer of automotive sensors.
- Sintech do Brasil: Specializes in parts for automotive engines.
- Bins (Datwyler Brand): Manufactures technical rubber parts for the automotive sector.
- Heilind Electronics Brasil: Distributor of electronic components for the automotive industry.
- Tecfil: (Mentioned as an example of the auto parts sector)
- Dana Brasil: (Mentioned in the context of aftermarket growth)
- Fornecedores mencionados pela Heilind: Amphenol, Bel Fuse, Harting, Hirose, Molex, JAE, TE Connectivity.
Auto Parts Distributors:
- Scherer Autopeças: Major distributor in the south of Brazil, serving light and heavy lines, as well as agricultural and motorcycle parts, and tires.
- Pellegrino: Traditional distributor with numerous branches, serving the B2B market with a wide portfolio of parts for light and heavy vehicles, motorcycles, and accessories.
- DASA / SAMA: Renowned distributor for light and heavy segments with a large portfolio and many branches.
- COBRA Rolamentos e Autopeças: Distributor of bearings and auto parts for light and heavy lines, agricultural and industrial.
- Roles Distribuidora de Autopeças: Distributor focusing on retailers and workshops with branches in several states.
- Rolemar: Distributor with a focus on bearings and retainers for light vehicles and commercial vehicles.
- Real Acessórios: Distributor of automotive parts and accessories with physical stores and e-commerce.
- Jahu Borrachas e Autopeças: Specializes in rubber products and also distributes original parts.
- G&B Distribuidora de Autopeças: Serves retailers and workshops with a large catalog.
- Auto Brasil: Distributor of national and imported auto parts.
Logistics Providers:
- Autoport (Grupo Águia Branca): Offers customized automotive logistics services, including port operations, vehicle and parts transport, yard management, and storage.
- Tegma Gestão Logística: Specializes in customized logistics operations, including vehicle storage, transportation, and yard management.
- Brazul Transporte e Logística: Provides vehicle transport and logistics services, including yard management and PDI (Pre-Delivery Inspection).
- VIX Logística (Grupo Águia Branca): Offers customized logistics solutions and is involved in automotive logistics.
- DSV: (Mentioned as GWM's logistics partner)
Financial Services:
- Stellantis Financial Services Brazil: Offers financing, insurance, consortiums, and leasing for Stellantis brands.
- Chevrolet Serviços Financeiros (GM Financial): Provides financing, consortium, and insurance solutions for Chevrolet vehicles.
- Banco Volvo: Offers financial services for Volvo products.
- PACCAR Financial: Provides financing for DAF trucks.
- Fiat Serviços Financeiros: Offers financing, insurance, and consortiums for Fiat vehicles.
Technology and Software Providers:
- Nexer Group: Provides technology solutions, including those based on Microsoft Dynamics 365, for the automotive industry and dealerships.
- KMC Tecnologia Automotiva: Develops solutions for automotive repair shops, dealerships, and autocenters, focusing on equipment for alignment, balancing, and tire mounting/demounting.
- Heilind Electronics Brasil: (Also fits here as a distributor of electronic components crucial for automotive technology).
- Compre Sua Peça: Autotech developing online sales solutions for the auto parts aftermarket.
- Aquarela Analytics: (Mentioned in the context of AI opportunities in the sector).
Post-Sales/Aftermarket Services:
- Staff: Specializes in post-sales for dealership networks, providing chemical products for vehicle maintenance and training.
- KMC Tecnologia Automotiva: (Also fits here as they provide equipment for repair shops).
- GWM Brasil: Implementing a unique pricing policy for replacement parts in their aftermarket strategy.

Show estimates of volumes and sizes of each step in the value chain.

Overall Market Size: The automotive sector represented approximately 5% of Brazil's GDP and over 20% of the industrial GDP in recent years (data from 2018). The aftermarket alone represented 2% of Brazil's GDP in 2025 and is projected to double in size by 2040.
Production Volume (2024): Brazil produced 2.55 million autovehicles in 2024, a 9.7% increase compared to 2023. This placed Brazil as the 8th largest vehicle producer globally in 2024. Production in January 2025 was 175.5 thousand units, up 15.1% from January 2024. The projection for production in 2025 is 2.749 million units, a 6.8% increase over 2024. Anfavea's projection for 2025 production is 2.8 million vehicles. Another projection for 2025 is 2.802 million units, a 5.6% increase over 2024.
Sales Volume (New Vehicles 2024): Sales of new vehicles in Brazil grew by 14.2% in 2024, reaching 2.63 million units. Another source indicates 2.634 million units sold in 2024. This was the highest growth rate since 2007 among the top 10 global markets. The sum of new and used vehicle sales reached a record 14.2 million units in 2024. Sales in January 2025 were 171.2 thousand units, a 6% increase year-on-year. In March 2025, 183,526 vehicles were emplacados, a 4.4% increase compared to March 2024. The accumulated sales in Q1 2025 reached 516,540 vehicles, a 7.0% increase over Q1 2024.
Sales Volume (New Vehicles 2025 Projection): Projections for 2025 sales range from a 5% growth to 2.77 million units (Fenabrave) to a 5.6% growth to 2.802 million units (Anfavea). Some optimistic projections suggest reaching 3 million units in 2025.
Import Volume (2024): Imports had their best period in 10 years in 2024, with 466.5 thousand emplacamentos, a 33% increase driven by electrified vehicles, especially from China.
Import Volume (January 2025): 39.3 thousand units imported, a nearly 25% increase compared to January 2024.
Export Volume (2024): 398.5 thousand autovehicles were exported in 2024, practically equaling the 2023 result. Exports to Argentina and Uruguay saw significant growth.
Export Volume (January 2025): 28.7 thousand units exported, a 52% increase compared to January 2024, largely due to increased demand from Argentina.
Auto Parts Industry Revenue (2024): The auto parts industry's nominal revenue grew by 9.8% from January to September 2024 compared to the same period in 2023. The estimated nominal revenue for the auto parts industry in 2024 was R$ 259.1 billion, an 8% increase over 2023. The aftermarket alone moved almost R$ 260 billion in 2024.
Auto Parts Industry Revenue (2025 Projection): The Sindipeças expects a nominal revenue of R$ 247.7 billion in 2024, a 4% increase over 2023. (Note: There are slightly conflicting figures for 2024 auto parts revenue projections between sources and. Using the more recent and likely revised figure from). The projection for auto parts industry revenue in 2025 is R$ 269.5 billion, a 5% growth over the 2024 projection.
Used Vehicle Market Size (2024): The Brazilian used car market was expected to reach US$ 151.72 billion in 2024.
Used Vehicle Market Size (2029 Projection): Projected to grow at a CAGR of over 4% to reach US$ 197.75 billion by 2029.
Fleet Size: The Brazilian fleet exceeded 123 million vehicles in 2024, a 4% growth over 2023. Cars, motorcycles, and pickup trucks account for over 80% of the national fleet. Trucks and buses represent approximately 4% of the circulating vehicles, around 4.9 million units.
Financing: In 2024, credit concessions for the purchase of new and used vehicles increased by 36.4%, totaling R$ 192.1 billion. 5.5 million vehicles (new and used) were financed in 2024, an 18.7% increase. Financed sales accounted for 44% of new vehicle emplacamentos in 2024.
Aftermarket Size (2024): The aftermarket generated nearly R$ 260 billion in revenue in 2024. Sales of replacement parts in Brazil move around R$ 100 billion per year.
Aftermarket Growth (2024): The replacement market grew by 13.0% in nominal terms and 9.6% in real terms from January to September 2024 compared to the same period in 2023.
Online Aftermarket Sales: The digital segment represents only 6% to 7% of total replacement parts sales, around R$ 7 billion to R$ 10 billion annually (based on the R$ 100 billion estimate).
Investments: The automotive sector is undergoing the largest investment cycle in its history, totaling R$ 180 billion, driven by government programs like Mover. Automakers announced R$ 72 billion in investments in Brazil in 2024 alone. [Value Chain Context] Investments in the auto parts sector were projected at R$ 6.2 billion in 2024. The BNDES approved R$ 3.6 billion in credit for the automotive sector in 2024.