Brazil automotive industry growthThe Brazilian sector is regulated by the Associação Nacional dos Fabricantes de Veículos Automotores (Anfavea), produced in 1956, which contains automakers (automobiles, light vehicles, trucks and buses) and agriculture machines with factories in Brazil. Developments and Technologies in the Aftermarket: Advanced technology, such as autonomous driving and connected mobility, are an added advantage in the aftermarket sector. The forthcoming automobiles demand new variety of technological intelligence gear. Nonetheless, Brazil aftermarket is not advanced and auto- parts companies and suppliers are not ready to meet the developing technological demands. The Brazilian government has created handful of mandatory improvements in Brazilian automobiles such as power efficiency and security. The government is planning to assistance international competitiveness for Brazil’s auto manufacturers, improved production of higher-technology components, and greater international integration for Brazilian auto-merchandise.
The Brazilian automotive aftermarket is quite informal and most of them are managed like family organizations with 1 subsidiary and handful of employees. They do not use automated systems to produce analytical details that could assist decide product portfolio mix and to location orders, but depend on the phone. Majority of the customers are holding on to their present vehicle instead of acquiring a new one particular due to the difficult economy. This trend has resulted in the development of the automotive aftermarket with consumers spending much more income on car maintenance.
Against this backdrop, it is not surprising that profit margins of Brazilian automotive organizations have deteriorated sharply more than the past 12 months, and this … READ MORE >>>