02/17/2024 – 9:00
The beginning of 2024 was taken by a wave of optimism when it comes to the national automotive industry. A milestone in this was, at the beginning of February, the announcement of the investment of R$ 9 billion for the Brazilian and Latin American market of Volkswagen. The value, added to the R$7 billion previously announced, reaches R$16 billion by 2028.
“We are giving clear signals of our institutional confidence in this country. And, more than that, the growth potential of the industry, which represents 20% of Brazilian industrial GDP”, said the president of Volkswagen South America, Alexander Seitz, to the press.
The fact drew attention as it was the largest investment among automakers recently announced for the country. However, he is not the only one. This is just a portion of the R$48.4 billion planned and already announced by companies in Brazil until 2032.
Automakers
In addition to the German one, the list of investments includes: Great Wall Motors (R$ 10 billion until 2023 and 2032); Renault (R$5.1 billion from 2021 to 2027); Caoa Chery (R$4.5 billion between 2021 and 2028); BYD (R$3 billion from 2024 and 2030); Nissan (R$2.8 billion from 2023 to 2025); It is GM R$7 billion by 2028).
See below an x-ray of each company:
Great Wall Motors
The Chinese GWM intends to make an investment of R$ 10 billion in the Brazilian market. There will be two investment cycles in its future factory in Iracemápolis (SP): around R$4 billion from 2022 to 2025 and R$6 billion between 2026 and 2032, with the expectation of generating 2,000 direct jobs by 2025.
Although the inauguration for May 1st will be postponed, the expectation is that the automaker will inaugurate its factory on national soil in 2024. The operation will be dedicated exclusively to the production of hybrid and electric vehicles.
General Motors
General Motors will invest R$7 billion for the first phase of its new investment cycle in its operations in Brazil. The amount will be applied in the period from 2024 to 2028, with a focus on “sustainable mobility”. This will encompass the complete renewal of the vehicle portfolio, development of technologies (and customized ones for the local market), in addition to the creation of new businesses. For this, the plants will receive updates.
Renault
Renault confirmed the investment of R$2 billion for the production of a new SUV at the Ayrton Senna Complex, in São José dos Pinhais, Paraná.
Caoa Chery
Caoa Chery revealed an investment of R$3 billion for the next 5 years. With the investment, the company will increase vehicle production, especially the Tiggo5X Sport model – which will have its capacity increased by 150%, in addition to multiplying the number of jobs.
BYD
As announced in July, BYD promises to invest R$3 billion, with the expectation of generating around 5,000 jobs. The investment revealed corresponds to what the company calls the “first phase of the project”.
The plant is expected to deliver the first vehicle between the end of 2024 and the beginning of 2025. The technological complex will produce chassis for electric buses, electric trucks and passenger cars (electric and hybrid).
Nissan
Nissan's investment plan until 2025 is to invest R$2.8 billion, to produce two new SUVs, in addition to assembling a turbo engine. This will allow the installation, for example, of new equipment, as well as expansions in the production line and the evolution of processes at the Nissan complex in Resende (RJ).
Anfavea adds R$ 100 billion
Anfavea (National Association of Motor Vehicle Manufacturers) began its monthly press conference in February with the participation of the Vice President of the Republic and Minister of Development, Industry, Commerce and Services, Geraldo Alckmin.
In it, the entity stated that contributions could reach almost R$100 billion in the current cycle. To do this, it took into account ongoing investments by automakers located in the country, new entrants and the auto parts sector. Anfavea emphasizes that this value should increase soon with new announcements.
Government celebrates
According to the federal government, this means the improvement of the Brazilian economic environment, the enactment of tax reform and the launch of the “New Industry Brazil”, with public investments and actions planned for industrial development over the next decade.
It is worth remembering that the government announced, on January 22, an investment plan for the national industry, called “New Brazilian Industry”, prepared by the CNDI (National Council for Industrial Development).
The measure foresees a contribution of around R$300 billion until 2026 to promote the reindustrialization of the country, and its goals are sustainability, innovation, in addition, of course, to promoting new jobs.
Fenabrave predicts 12% growth
Another sign of optimism is that Fenabrave (National Federation of Motor Vehicle Distribution) predicts a 12% increase in sales for 2024. The entity that represents the sector projects 2,440,887 registered units for cars and light commercial vehicles.
“We are anticipating a possible improvement in the supply of credit, as well as a positive environment in the industry, which will have more incentives for the development of new products, based on the MOVER Program, recently announced by the government”, analyzes Andreta Jr., President of Fenabrave.
Move Program
On December 30, the federal government also launched “Mover”, a national green mobility and innovation program. This is a new phase of the old Rota 2030, which will have a tax incentive of R$ 19 billion until 2028. With the measure, the objective is to expand the decarbonization of the fleet and stimulate the production of new technologies, whether for passenger cars, buses and trucks.
According to the executive, the Mover MP creates the so-called FNDIT (National Fund for Industrial and Technological Development), which will be managed by BNDES and under the coordination of the Ministry of Development, Industry, Commerce and Services.
Electrified market
For ABVE (Brazilian Electric Vehicle Association), the measure is positive and provides predictability for companies in the sector to invest in hybrid and electric vehicles and parts.
“The big news for ABVE member companies, which are already producing in Brazil and others that are bringing investment here, is the inclusion of electromobility within the incentive conditions of the local condition”, says Ricardo Bastos, president of the association.
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