Booming Vehicle Manufacturing Industry in Brazil Leads to Increased Foreign Investment

With the exception of course of the United States, the Latin American giant is the largest GDP nation in the western hemisphere by far. Not only that but earlier this year Brazil become the world’s sixth largest economy, having overtaken the UK in GDP terms and is now heading for fifth place.

Communications are obviously vital if the people of this enormous society are to function well together. Not just electronic ones such as email, radio, TV, internet and telephone. Physical interaction of both people and freight is (and needs to be) also on a huge scale, by road, air, rail and inland waterway. Of increasing importance therefore is the country’s automobile and vehicle manufacturing industry. Brazil has a profile that is steadily expanding and combines domestic and international companies both of them producing vehicles of all types within the national territory. About 3.5 million vehicles are now produced annually, that makes Brazil sixth in world terms, reflecting neatly its sixth place in overall GDP economic rankings. The vehicle producers in Brazil are regulated by ANFAVEA, Associacao Nacional dos Fabricantes de Veiculos Automotores. This organisation was launched fifty years ago and today includes manufacturers in all parts of the industry; cars, vans, trucks, buses, tractors, etc. In turn ANFAVEA is a member of the international body OICA which has its headquarters in Paris.

As well as domestic manufacturers such as Troller, Marcopolo and Agrale, a large number of international companies in the sector are operating in Brazil. These include such well-known names as Ford, Volkswagen, Fiat, General Motors, Nissan, Mitsubishi, Toyota and Mercedes-Benz (among many others). The very first Brazilian-produced vehicle was a Chevrolet which emerged in 1925. Thirty years later in Santa Barbara (Sao Paolo area) saw significant production of a Brazilian pioneer vehicle, the Romi-Isetta followed by Toyota’s ‘Land Cruiser’ production in 1958. This was followed just a year later by Volkswagen, manufacturing the ‘Kombi’ (an earlier version of the well-known ‘Beetle’).

The industry developed rapidly from then on and expanded enormously following the liberalisation of the vehicle industry in the 1990’s when for the first time the local market was also opened to large-scale imports. The most successful and popular domestic manufacturer (at least, so far) is Troller. Favourite models produced by the company include the Pantanel (a popular pick-up truck) and the T4 (a rugged two door, four-wheel drive vehicle). These sell widely not just in Brazil but also throughout Latin-America and parts of Africa, too. So, the automobile sector is a very successful one in Brazil. Large scale international investment is not only growing as regards the overseas companies working in the Country but (more importantly) the rapidly expanding local sector too. There’s no doubt that cars and trucks, as well as buses, etc. all have a bright future in this leading BRICS nation.

All in all investment in Brazil is booming and a leading investor news website recently predicted that this will continue to rise at least for the next decade with no signs of the countries booming economy failing especially with the upcoming World Cup and the Olympics fuelling investment in the country even more.

Article Tags: Vehicle Manufacturing Industry, Vehicle Manufacturing, Manufacturing Industry

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