Why this is important to Wisconsin businesses: Wisconsin companies that manufacture vehicle components or offer advanced technologies for the industry may find opportunities.
Brazil is the eighth-largest automotive manufacturer in the world, producing 2.55 million vehicles in 2024, a 9.7% increase over the previous year.
Higher sales are helping to propel production growth, according to the Rio Times. In the month of October 2024, vehicle sales reached 264,900, the highest monthly total in a decade.
Automakers had 107,000 employees at the end of 2024, up 8.3% over the previous year—the biggest year-over-year increase since 2007, according to ANFAVEA, the Brazilian Association of Automotive Vehicle Manufacturers. ANFAVEA forecasts production will reach 2.75 million vehicles in 2025.
That’s still below pre-pandemic levels, when 2.94 million vehicles were manufactured in 2019, largely because the industry faces challenges from increasing foreign competition, the Rio Times said.
The government is responding to the competition and trying to encourage greener vehicle production by promoting initiatives such as the Green Mobility and Innovation Program (MOVER). Introduced in December 2023, MOVER offers financial incentives and tax benefits for companies that invest in decarbonization, energy efficiency, and new technologies. The program will allocate R$19.3 billion ($3.7 billion USD) in financial credits between 2024 and 2028.
In addition, in January 2024, the government announced Nova Indústria Brasil—an industrial policy to boost sustainability and innovation through 2033, offering R$300 billion ($57 billion USD) in financing for the first few years of the program. The plan is designed to revitalize some segments of Brazil’s industrial base and encourage technological advances.
Brazil’s clean energy mix, rich raw material. resources for electric vehicle (EV) components, and expertise in battery production present unique advantages, make it a strategic location for the production and exportation of EV technologies.
For Wisconsin businesses manufacturing auto components or electronics, the annual Automec exhibition, held in São Paulo, is the main meeting place for building relations with the biggest distributors, auto parts retailers, auto repair shops, and national and international industry suppliers.
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