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 at 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 near 3,5 million vehicles last year that is seventh largest in the World.
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 Fiat, Volkswagen Group, Ford, General Motors, Nissan Motors, Toyota, MAN SE, Mitsubishi, Mercedes-Benz, Renault, Honda, Hyundai 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 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 and work vehicles and automobiles in Brazil in the 1960s. The Italian giant Fiat established its first factory in Brazil in the 1960s, and Mercedes Benz started to produce trucks and buses during this time, 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 of 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.
Historical production by year
|Year||Data||0—1 mln||1—2 mln||2—3 mln||3—4 mln|
- Effa Motors
- Ford do Brasil
- Fiat Automóveis
- General Motors do Brasil
- Renault do Brasil
- Volkswagen do Brasil
- Fábrica Nacional de Motores
- Santa Matilde
- Simca do Brasil