São Paulo – Brazilian automobile manufacturing companies will get ready to export automotive technology in the future. At least that is the wish of Cledorvino Belini, new chairman of the National Association of Vehicle Manufacturers (Anfavea). In a press conference on this Friday (30th), Belini stated that the association wants to encourage the implementation of a new national program of investment attraction policies geared towards accelerating the development of technology and innovation, so as to turn the country into a centre for intelligence and engineering in the industry. “We are going to export technology,” said Belini.
According to him, among the Bric countries, a group that comprises Brazil, Russia, India and China, Brazil is best prepared for such. He believes that the national industry needs an injection of competitiveness, ranging from infrastructure investment to technology and human capital. The wants to make a diagnosis of the segment and propose measures for technological progress. The plan should be carried out by the private sector and the government. Investment of US$ 11.2 billion is forecasted for the segment in the 2010-2013 period. From 2007 to 2009, investment totalled US$ 8.1 billion.
“If we are to assure our place in the auto industry of the future, we need competitiveness, we need an injection of competitiveness. This may enable Brazil to be a great player (in the segment) in the future,” said Belini, who underscored that the country already occupies an important position due to the size of its population and of its domestic vehicle market. Brazil is the sixth largest auto manufacturing company in the world, and ranks fifth in production. The export volume – 475,000 vehicles in 2009 – is low when compared to the country’s overall production, which was 3.18 million automobiles during the period, according to data supplied by the Anfavea.
Belini claims that auto exports dropped by half in the last few years, citing rising raw material prices, which led to increased production costs, and unfavourable exchange rates as contributing factors. Foreign sales decreased by 35.3% in 2009, and totalled 897,000 units in 2005, for instance. Belini states that markets worldwide were affected by the crisis, which contributed for sales to drop. This year, however, the Anfavea forecasts that exports should rise up to 530,000 units. However, Brazilian auto sales to the Middle East, a region that houses Arab countries, are small. “Other countries manage to be more competitive in that region,” said the executive.
According to the Anfavea’s projections, auto industry sales should total 3.4 million units in 2010, representing growth of 8.2% over last year. In 2009, the Brazilian auto industry grew by 12%, boosted by the domestic market, which received fiscal and credit incentives for purchases of vehicles. In order for domestic sales to remain strong this year, according to Belini, three factors are crucial: credit, income, and keeping inflation under control. The sector’s installed capacity is 4.3 million vehicles per year.
*Translated by Gabriel Pomerancblum
