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Is Brazil a car paradise?

2011

The demand for cars is exploding. And the market is known for being dynamic. It offers enormous opportunities. But buyers are demanding more. The auto industry must adapt. But how?

Once the world's biggest debtor and close to bankruptcy in 2002, Brazil has long been a growth driver of the global economy together with Russia, India and China (BRIC).

With rising prosperity, more and more Brazilians want individual mobility – and are buying more and better cars. The car symbolizes a step up in society – so the demand for cool design and visible extras is rising. Established premium OEMs benefit from the rising purchasing power, as do producers of the latest hip low-price models and innovative suppliers who encourage customers to upgrade their vehicles. For Chinese and Indian OEMs, Brazil is another territory to be conquered in their global campaigns – by the end of this decade, they could achieve a market share of around 10%.

According to calculations by Roland Berger Strategy Consultants, car sales in Brazil could double between 2010 and 2020 to 6.6 million vehicles; production may rise by 3.6 million cars (2010) to 5.5 million. As early as 2015, Brazil could overtake Japan to become the world's third largest car market after China and the US. Growth of 8% per year in commercial vehicles between now and 2018 is also possible.

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