The Brazilian transport and

industry sectors

Pedro Bentancourt ANFAVEA Vice‐president Brazilian Automotive Complex

GDP SHARE (2015) EMPLOYMENT (Including Autoparts Industry) (Direct and indirect) Industrial: 22% 1,3 million people Total: 4%

WORLD RANKING NATIONAL TAXES (2016) AUTOMOTIVE th Sales: 8 position R$ 45 billion ENGINEERING Production: 9th position

PLANTS REVENUE (2016) 65 Industrial Units (Including Autoparts Industry) 10 States US$ 46,9 billion 42 Cities

2 Automotive Industry Context

Thousand units

3.713 3.382 3.418 3.403 3.051 3.076 3.146 2.825 2.699 2.357 2.404 2.419 3.633 3.767 2.177 2.124 3.515 3.802 3.498 2.820 3.141 1.606 1.675 1.634 1.685 2.463 2.240 2.569 1.715 1.928 2.050 1.579 1.429 1.489 1.601 1.479

724 766 566 634 635 569 503 553 443 565 517 286 248 266 393 368 334 417 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Exports Sales Production

3 World Ranking ‐ 2017

Production Sales

Country Thousand Unit Country Thousand Unit China 29.015 China 29.123 United States 11.190 United States 17.584 Japan 9.694 Japan 5.239 Germany 5.646 India 4.018 India 4.783 Germany 3.811 South Korea 4.115 United Kingdom 2.955 Mexico 4.068 France 2.605 Spain 2.848 2.240 Brazil 2.699

9th PRODUCER 8th MARKET

Sources: Anfavea, OICA 4 Automotive Industry Complex

Horizonte ‐ CE  (Ford) 27 Companies  65 Factories* Catalão / Goiana ‐ PE  Anápolis ‐ GO 10 States  42 Cities

Camaçari ‐ BA Resende / Porto Real / Itatiaia‐ RJ

Betim / Sete Lagoas Juiz de Fora / Contagem ‐ MG

São José dos Campos / Taubaté ‐ SP

Ponta Grossa ‐ PR

Region of ABC ‐ SP / / Sumaré / / / / Canoas / Caxias do Sul / Itirapina / Iracemápolis – SP Horizontina / Gravataí / Monte Negro / Santa Rosa ‐ RS

S.J. dos Pinhais / Curitiba / Campo Largo ‐ PR

Araquari ‐ SC * Including engines and components factories

5 Desafios dos Gases do Efeito Estufa The industry is following two Motivados pelo desafiotrends: de reduzir os gases do efeito estufa, diversos países estabelecem metas e buscam as melhores soluções.

Reduction of the greenhouse Mobility, car sharing and road gases emissions safety

6 Electrics and hybrids in the world

Almost 350 thousand units Sales and share sold in China in 2016 Selected countries

More than 25% of market share considering the total sold in 2016

Source: Global EV Outlook, IEA, 2017.

7 And also in Brazil

Brazil: sales of electric and hybrid vehicles are growing. 0,2% We are facing new products, more public incentive Part. and consumer interest. 3.296

1.091 855 846 491 200 66 117

Until 2010 2011 2012 2013 2014 2015 2016 2017

8 9 Motor a combustão

Our reality allows a little more...

...such as biofuels. Our energy mix Primary sources of Motorization Automotive fuels energy technologies

Gasoline Conventional Petroleum Vehicles Diesel Hybrid

Natural Gas Gas

Coal Synthetic Hybrid Plug-in

Plants Biofuels Electric Uranium Electricity

Electricity, hydro, solar and geothermal Hydrogen Fuel Cell generation

We have a great variety in our energy mix 11 The world is searching for new technologies and Brazil has an unique opportunity: ethanol 12 ETHANOL

Rich in hydrogen

Liquid and renewable

Can help the development of fuel cell

13 Brazilian policy

Policy that aims to induce environmental and energy efficiency in the Brazilian energy mix

Emissions

Energy

14 Results expected

Increase of the renewable fuels

Reduction of carbon in the fuel mix

15 ROUTE 2030 Brazilian (expectations) Predictability for competitiveness new investments in the global and law security scenario

Brazilian New markets potentialities, Attraction of new and exports such as ethanol technologies increase

Technological Knowledge advance and generation in consolidation of auto Brazil parts chain Thank you!

Pedro Bentancourt ANFAVEA Vice‐president

www.anfavea.com.br

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