The agony of automakers does not accurately reflect the reality of the entire Brazilian automobile market. The automotive aftermarket segment — that is, spare parts — moves R$100 billion annually in Brazil. And it’s on the rise. Therefore, the Universal Automotive Systems Group has been moving parts in the competitive market to expand its share. After earning BRL 300 million in 2021, the company led by CEO André Belfort expects to increase sales by 66% this year, to BRL 500 million, with a focus mainly on people and technology. “When I talk about people, it’s about bringing the right professionals to the right divisions. The way of selling within the distribution is different from that carried out in retail, which is different from that practiced by installers and applicators”, said the executive. “Automations and technology, on the other hand, involve mobility and investments in the logistics environment, for example, with more appropriate tools.”
The expansion of the portfolio has been an important driver for the business. Founded 45 years ago, Universal initially focused its actions on the distribution of door handles and locks, but saw new opportunities over the decades. In addition to distributing, it started to manufacture products, expanding to other lines of the segment, launching and acquiring brands. There are already at least 27 thousand items available to customers. The commercialized product serves 48 automakers in Brazil and the international market. From light to heavy vehicles. Already the brands belonging to the company grew from five to eight.
In 2022, the radar is aimed at consolidating existing brands, especially UNI1000 (chemicals line) and Electric-Life (lamps and electrical lines), more recent. “It’s a process of letting them mature throughout the year. And in late 2022 or early 2023, come in with a new brand and a new line.” The releases are not yet defined, but the company remains attentive to the movements of automakers in relation to new models. The idea is to identify the components of these vehicles, possible changes and adaptations, to update the portfolio. “We have tried to follow the evolution process of electric cars. It’s a branch worth watching.”
In addition to paying attention to the domestic market, especially in vehicles with at least two years of use, the group expects growth in international operations, especially in Latin America. Universal Automotive has businesses in at least 20 countries and forecasts an 80% growth in foreign sales this year. “We sold R$ 25 million last year and the goal is to reach R$ 45 million”, said the executive. Argentina is the largest market in the region, followed by Uruguay and Colombia, respectively.
The company’s growth project also includes marketing strategies. Last year, the group closed – and remains in effect – a partnership with personalities of Brazilian motorsport, such as Paulo Gomes, Chico Serra and Ingo Hoffmann. Together, the three have 19 titles as Stock Car drivers. This year, the planning includes the Soccer World Cup in Qatar. The strategy is to have ambassadors to represent the company. Stars like the five-time champions Cafu and Denílson are in the crosshairs. “We are dealing with two national passions: cars – and consequently parts – and football. This process should be completed soon.”
The investments planned for the season involve R$ 10 million, “a 10 for the aftermarket”, according to Belfort. In addition to the amount allocated to marketing, physical interventions are planned, such as the expansion of an annex to the company’s industrial building, in Osasco, to accommodate more stock, and the opening of a distribution center in Itajaí, Santa Catarina, which will join to the two already existing in the states of São Paulo and Goiás.
The group has 800 employees in Brazil. More than 300 sellers promote business for the company, which saw the market heated up even during the pandemic. “The aftermarket, in general, goes against the grain of the new market, which suffers from rising interest rates, credit restrictions and electronic components. It’s still hot.” And it seems that the puzzle of the Universal Automotive Systems Group seems to take shape and increasingly attract the attention of vehicle lovers.
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