utomobiles and A light commercial vehicles

The automobile and light commercial vehicle segment will have over R$5 billion invested in it by 2012

36 Br a z i l Au t o m o t i v e Gu i d e • 2008 utomobiles and light commer- Before this, the performance by Bra- cial vehicles account for about zilian plants in 2007 will make Bra- 94% of all vehicle production, zil the seventh or eighth largest light exports and domestic sales vehicle producer in the world, over- inA , which ended 2006 as the taking traditional producer coun- ninth largest light car producer in tries such as the United Kingdom the world. Thirteen manufacturers and Canada. have been set up in the country, al- From the beginning of this de- most all of them multinational com- cade exports have driven produc- panies, producing global models in tion, with Brazil producing over two eighteen industrial plants spread million units a year since 2004. Now, around seven of the twenty-six Bra- however, it is the strong growth on zilian States. the domestic market that is fueling In its fifty-year history the Brazil- light vehicle assembly lines. ian has never Following expansion of 13% in before produced and sold as many 2006, with sales of 1.83 million au- automobiles and light commercial tomobiles and light commercial ve- vehicles as now. The national fleet hicles – 7.4% of them imported – do- numbers in the region of 25 mil- mestic sales experienced their largest lion units and production has been growth ever in 2007, with forecasts through successive year-on-year of about 25% growth for the year, phases of advancement. From 2005 getting close to sales of 2.4 million to 2006 the fleet expanded by 3.9% light vehicles in Brazil – about 10% and Brazilian plants produced almost of them imported. 2.5 million units. In 2007 expansion was even greater, up by about 13% on Credit based – Increased income 2006. Until December 2007, about and economic predictability have 2.8 million light vehicles will have left created a larger contingent of people Brazilian plants in twelve months. willing to buy cars who have access This is a record, and close to the to credit to consolidate this willing- maximum capacity of most Brazil- ness. Proof of this is the volume of ian assembly plants. This explains financed light vehicle sales in 2007: why expansion plans have been an- around 70% of all sales. nounced, with investment in excess Financial assets in Brazil for ve- of US$ 5 billion being made by 2012. hicle purchasing have grown by close

2008 • Br a z i l Au t o m o t i v e Gu i d e 37 Domestic sales of automobiles and light commercial by motor type

The performance Source: Anfavea by Brazilian to 25% in 2007 and total over US$ 35 liter engines have been growing at a billion. In the first half of 2007 alone slower pace than sales of more expen- financial institutions leant US$ 15 sive cars. What are known as “popu- plants in 2007 will billion, up 28% on the same period lar cars” with 1.0-liter engines that in 2006. accounted for 71% of the Brazilian make Brazil the At the same time that there is market at the beginning of the decade no lack of resources to finance pur- now account for around 55% of sales. chases of automobiles and light com- Another factor that has driven seventh or eighth mercial vehicles, credit has become the Brazilian market has been the cheaper and repayment periods have growth, since 2003, of bifuel tech- largest light vehicle stretched. The average rate of inter- nology – “flex fuel” cars – that run est for vehicle finance was 1.5% a on gasoline, ethanol or a mixture of producer in month in 2007, compared with 3% in both in any proportion. As Brazil is 2002. Currently payment plans are the world’s second largest producer being offered over 80 months, but of ethanol and bifuel is now distrib- the world. the most common are for 36 months, uted on a large scale in the country, representing over half of the busi- the advantage of ethanol’s lower ness done. price in comparison with gasoline The combination of lower interest has encouraged consumers to trade and longer repayment terms has in in their old vehicles for a new flex practice created lower installments, model. creating another Brazilian market Bifuel cars have rapidly taken over phenomenon for automobiles and the automobile and light commer- light commercial vehicles: people are cial vehicle market in Brazil, now ac- buying more expensive cars. Hence counting for about 85% of new vehicle sales of entry-level models with 1.0- sales. Since 2003 over four million units have left the assembly lines.

The strong growth of the domestic light vehicle market Exports – In 2006 exports has been supported by a set of macroeconomic factors: reached 790,000 automobiles and light commercial vehicles. In 2007 about 750,000 units will be exported • Greater price stability and predictability, with annual inflation of around 4%; from Brazil. • A fall in unemployment to below 10%; Of the thirteen light vehicle plants installed in Brazil, seven produce • Constant increase in income. Average income for workers in Brazil rose by 2.5% between automobiles and light commercial 2006 and 2007 alone; vehicles: Fiat, Ford, General Mo- • Significant growth in the population aged between 20 to 30 years of age, which is precisely tors, Mercedes-Benz, PSA Peugeot when people most buy cars; Citroën, Renault, and Volkswagen. • Large potential market, as in Brazil there are eight people per vehicle, which is a lower index Two - and – only make than in neighboring countries such as Argentina, where it is 5.7; automobiles. Four, Agrale, , Mitsubishi and , make only • Lower interest rates, longer repayment plans, and fast credit growth – the most important light commercial vehicles, with the factor for automobile purchases. first two also operating in the and bus segments. 38 Br a z i l Au t o m o t i v e Gu i d e • 2008

General Motors do Brasil Ltda. Ford Motor Av. Goiás, 1.805 Company Brasil Ltda. 09550-900, Av. do Taboão, 899, São Caetano do Sul, SP Rudge Ramos, 09655-9000 Tel. 55 11 4234 7700 São Bernardo do Campo, SP www.chevrolet.com.br Tel. 55 11 4174 8855 www.ford.com.br President Jaime Ardila President Marcos S. de Oliveira Plants São Caetano Sul, SP Plants Av. Goiás, 1.805 São Bernardo do Campo, SP, São José dos Campos, SP, Av. do Taboão, 899, Rudge Ramos Av. General Motors, 1.959 Taubaté, SP, 12224-300 Av. Charles Schneider, 2.222, Mogi das Cruzes, SP, Parque Industrial, 12040-001 Rod. Pedro Eroles, km 39, Camaçari, BA, 08741-970, Complexo Industrial Nordeste, Gravataí, RS, Rua dos Polimeros, 2.000, Rod. BR 290, km 67, 94000-000 Área Industrial Leste, 42810-000 Horizonte, CE, Products Agrale S.A. Rod. BR 116, km 37,7, 62880-000 Automobiles, BR 116, km 145, 15.104 light commercial 95059-520, , RS Products Tel. 55 54 3238 8000 Automobiles, www.agrale.com.br Fiat Automóveis S.A. light commercial Rod. Fernão Dias, km 429 President 32530-000, Betim, MG Hugo Zattera Tel. 55 31 2123-2111 Office: Plant Rua do Paraíso, 148, 11º andar Caxias do Sul, RS, 04103-000, São Paulo, SP Nissan do Brasil BR 116, km 145, 15.104, Tel. 55 11 2126 2000 Automóveis Ltda. 95059-520 www.fiat.com.br Av. Renault, 1.300, Borda do Campo, Products President MMC Automotores 83070-900, Light commercial Cledorvino Belini and utility vehicle do Brasil Ltda. São José dos Pinhais, PR, Av. das Nações Unidas, 19.847 Tel. 55 41 3380 2000 Plant 04795-100, São Paulo, SP Office: Betim, MG, Tel. 55 11 5694 2700 R. Fidêncio Ramos, 223, 11º Rod. Fernão Dias, km 429 www.mitsubishimotors.com.br 04551-010, São Paulo, SP www.nissan.com.br Products Executive President Automobiles, Paulo Arantes Ferraz President light commercial Thomas Besson Plant Catalão, GO, Plant Quadras 05, 07 e 07A, São José dos Pinhais, PR, Distrito Mineiro-Industrial de Av. Renault, 1.300, Catalão, Dimic, 75701-970 Borda do Campo

Products Products Light commercial Light commercial

42 Br a z i l Au t o m o t i v e Gu i d e • 2008 Iveco Latin America Ltda. R. Senador Milton Campos, 175 Ed. Piemonte, 8º, Vila da Serra Mercedes-Benz 34000-000, Nova Lima, MG Honda Automóveis do Brasil do Brasil Ltda. Tel. 55 0800 704-8326 R. José Áureo Bustamante, 377, Av. Alfred Jurzykowski, 562, Office: 04710-090, São Paulo, SP Vila Paulicéia, 09680-900 R. do Paraíso, 14, 6° andar, Tel. 55 11 5576 5122 São Bernardo do Campo, SP, 04103-000, São Paulo, SP Karmann-Ghia do Brasil Ltda. www.honda.com.br Tel. 55 11 4173 6611 Tel. 55 11 2126 2490/2489 Av. Álvaro Guimarães, 2.487, www.mercedes-benz.com.br www.iveco.com.br 09810-901, São Bernardo do President Campo, SP, Sho Minekawa President President Tel. 55 11 4344 5800/5855/5841 Gero Herrmann Marco Mazzu www.karmannghia.com.br Plant Sumaré, SP, Plant Plants Director General Estrada Municipal Juiz de Fora, MG, Unidade de Veículos, Wagner Leonard Silvério Valêncio Calegari, 777, Rod. BR 040, km 773 Rodovia MG 238, km 74 13170-190 Distrito Industrial II Sete Lagoas, MG Plant 36088-410 Fiat PowerTrain Technologies, São Bernardo do Campo, SP, Products Rodovia MG 238, km 73,5 Av. Álvaro Guimarães, 2.487, Automobiles Products Sete Lagoas, MG 09810-901 Automobiles Products Products Light commercials Special vehicles

Peugeot Citroën do Brasil Automóveis Ltda. Praia de Botafogo, 501, Ltda. cj. 703/704, Via Anchieta, km 23,5, Centro Empresarial Toyota do Brasil Ltda. 09823-901, Mourisco, Botafogo Av. das Nações Unidas, 12.901, São Bernardo do Campo, SP, 22250-040., Rio de Janeiro, RJ Torre Oeste, 14º e 15º andares, Tel.55 11 4347 2355 Tel. 55 21 2565 4900 S.A. Brooklin, www.vw.com.br www.psa-peugeot-citroen.com Av. Renault, 1.300 04578-000, São Paulo, SP, Borda do Campo Tel. 55 11 5502 9100 President Director General 83070-900 www.toyota.com.br Thomas Schmall Vincent Rambaud São José dos Pinhais, PR Tel. 55 41 3380 2000. President Plants Peugeot do Brasil Office: Shozo Hasebe São Bernardo do Campo, SP Managing Director R. Fidêncio Ramos, 223, 9º, 10º, Via Anchieta, km 23,5 Laurent Tasté 11º e 15º andares, Vila Olímpia, Plants São José dos Pinhais, PR 04551-010, São Paulo, SP, Indaiatuba, SP, Estrada PR, km 675, 83183-000 Citroën do Brasil Tel. 55 11 2184 8300 Rod. SP 75, km 48, s/nº, Taubaté, SP Managing Director www.renault.com.br Marginal Sul, Av. Carlos Pedroso Sergio Habib Bairro Caldeira, 13300-000 da Silveira, 10.000 President São Bernardo do Campo, SP, Piracangaguá, 12043-000 Plant Jérôme Stoll Av. Piraporinha, 1.111, São Carlos, SP Porto Real, RJ, Bairro Planalto, 09891-002 Rod. Luiz Augusto de Oliveira, Centro de Produção, Plant km 148,8, 13560-970 Estrada Renato Monteiro s/nº, São José dos Pinhais, PR, Products 27570-000 Av. Renault, 1.300 Automobiles Products Borda do Campo Automobiles, Products light commercial Automobiles, Products light commercial Automobiles, light commercial

2008 • Br a z i l Au t o m o t i v e Gu i d e 43 The best way to reach your destination.

When you purchase a new P-, G- and R-series Scania truck, you get more than a long haulage truck. You get technology, reliability, durability, and positive certainty that you will arrive at your destination with the lowest operational cost. The chassis, the engine and the powertrain are manufactured to guarantee this result. It offers comfort, safety, and productivity. Start to shorten your paths. Go straight to a Scania dealer. Get to know the best solutions to keep your business always on the move.

Scania. Always headed towards the future.

www.scania.com.br

Anúncio_Inglês_Rodoviário_410x271 1 19/11/2007 18:10:24 The best way to reach your destination.

When you purchase a new P-, G- and R-series Scania truck, you get more than a long haulage truck. You get technology, reliability, durability, and positive certainty that you will arrive at your destination with the lowest operational cost. The chassis, the engine and the powertrain are manufactured to guarantee this result. It offers comfort, safety, and productivity. Start to shorten your paths. Go straight to a Scania dealer. Get to know the best solutions to keep your business always on the move.

Scania. Always headed towards the future.

www.scania.com.br

Anúncio_Inglês_Rodoviário_410x271 1 19/11/2007 18:10:24