São Paulo – The Arab market has opportunities for automobiles made in Brazil. The opinion was expressed by the chairman of the National Association of Vehicle Manufacturers (Anfavea), Cledorvino Belini, and was conveyed during an interview to ANBA this Monday (12th). According to Belini, the number of vehicles exported from Brazil to the Arab countries is very small. "However, I would say that there are opportunities in those markets,” said the Anfavea chairman.
Last year, Brazilian automakers sold 3,891 automobiles to the Arab market, according to data supplied by the Anfavea. There was a 5.8% decline over 2008’s figures, when 4,120 units were exported. “These sales consist of eventual orders that some manufacturers receive,” says Belini, who claims that the industry needs to work more in order to seize market opportunities in the Arab countries.
According to the chairman of the Anfavea, what prevent greater sales to the Arab world and an increase in overall exports is the cost of automobiles manufactured in Brazil. “The appreciated real (Brazilian currency ) is a big obstacle, no doubt, but that aside, we know that for every production chain there is an opportunity to be more competitive in order to export, be it through cost, raw material, logistics, or ports infrastructure,“ states Belini.
Market diversification is a concern of the industry in Brazil, according to the chairman of the Anfavea, and also of individual automakers. “We must remember, however, that diversification of export markets is closely related to a global policy of multinational corporations. We must take into consideration that there is idleness in other regions of the world, and due to the appreciated real, we are unable to compete against the same product as ours, being manufactured in other markets,” says Belini.
In the Arab world, the leading buyers of vehicles made in Brazil, in 2009, were Tunisia, which imported 1,816 automobiles, followed by Egypt, with 932 vehicles, and Syria, with 801 units. Morocco, Saudi Arabia, Qatar, the United Arab Emirates, Iraq, Jordan, Kuwait and Lebanon have also purchased Brazilian vehicles last year. Tunisia and Syria, however, were the only two countries that increased their imports. According to Belini, the products made in Brazil adapt well to these countries’ markets.
*Translated by Gabriel Pomerancblum
