Brazil Automotive Aftermarket Industry Future Outlook: Ken Research

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The report titled “Automotive Aftermarket in Brazil”, provides a comprehensive analysis of Brazil’s automotive aftermarket, growth of the sector, major products, hierarchy, new trends, developments, technology and future of Brazil’s automotive aftermarket.

Industry Overview: Brazil is the ninth-largest vehicle market in the world, with sales over 2 million in the recent years. The country’s political and economic crisis has affected the aftermarket market. Original equipment manufacturers (OEMs) and the automotive replacement market are the main markets in Brazil’s automotive industry chain. Brazilian automobile industry is responsible for the growth of the country’s economy since the beginning of the 20th century. The encouragement from manufacturers to establish the automobile industry has led to the development in production and subsequent commercialization of automobile aftermarket boosting the national economy. Originally the automotive aftermarket was to meet the needs of the automakers in terms of both production and after-sales demands. The increase in car sales in the recent years has led to a natural increase in demand for replacement parts, driving the growth in the automotive aftermarket sector. Brazilian aftermarket sector has witnessed decline comparing to other sectors of the automotive industry. The aftermarket is responsible for the resilience demonstrated by the sector during the recent period of economic recession that was experienced by the country.

Brazilian Aftermarket Growth, Products and Structure: Brazil’s aftermarket need to upgrade itself with the ongoing trends compared to the aftermarkets elsewhere in the world. It starts from how the aftermarket is structured, how companies treat customers, what products are made and carried. If Brazilian aftermarket is upgraded to the 21st century then the country will witness a drastic growth by the year 2020. The aftermarket is comprised of manufacture of cylinder blocks, check valves, engines, bodywork pieces, drive shafts, brakes, crankshafts, gearboxes, bodywork pieces, engines, transmission boxes, axles, and truck brakes. There are many challenges and opportunities in Brazil’s automotive aftermarket because of its complexity. Brazilian aftermarket almost resembles the aftermarkets around the globe and a hierarchy defines it. It starts with manufacturers of complete auto-parts systems on tier one, producers of parts and components for systems suppliers on tier two, isolated parts manufacturers in tiers three and raw materials producers in tiers four. The automotive aftermarket is highly fragmented and consists of a variety of distribution channels. There are about 150,000 aftermarket businesses in Brazil out of which 60 percent are distributors and retailers, 36 percent are auto centres and service shops, and 4 percent are car-dealer service departments.

The Brazilian automotive aftermarket is very informal and most of them are managed like family businesses with one subsidiary and few employees. They do not use automated systems to generate analytical information that could help determine product portfolio mix and to place orders, but depend on the telephone. Majority of the consumers are holding on to their current car instead of buying a new one due to the tough economy. This trend has resulted in the growth of the automotive aftermarket with consumers spending more money on vehicle maintenance.

Developments and Technology in the Aftermarket: Advanced technology, such as autonomous driving and connected mobility, are an added advantage in the aftermarket industry. The forthcoming vehicles require new type of technological intelligence equipment. However, Brazil aftermarket is not advanced and auto- parts manufacturers and suppliers are not ready to meet the growing technological demands. The Brazilian government has made few mandatory improvements in Brazilian vehicles such as energy efficiency and safety. The government is planning to support international competitiveness for Brazil’s auto manufacturers, increased production of high-technology components, and greater international integration for Brazilian auto-products.

Future of Automotive Aftermarket in Brazil: The aftermarket industry will face complexity in the next few years due to many challenges and opportunities. There will be a demand for various aftermarket products for current and older vehicles, but the demand will become more sophisticated as new vehicles incorporate different and advanced technologies. It was observed that the car production in Brazil has increased compared to the recent years along with a continuing growth in the light commercial vehicles, trucks and buses. The automotive aftermarket industry is recovering rapidly with the Brazilian economy as a whole. Brazil’s aftermarket growth is obstructed by debt and a low liquidity ratio. The aging national fleet and pending economic recovery has re-energized automotive development that will likely boost the growth. The growth in Brazil’s automotive manufacturers and aftermarket companies are linked indirectly. During Brazil’s economic crisis there was a decline in the automobile sales along with the automotive aftermarket. With the spike in the country’s economy, the aftermarket will actually witness a real growth in the coming years.

Key Topics Covered in this Report:

  • Brazil Automotive Aftermarket Research Report
  • Brazil Automotive Industry Analysis
  • Brazil Automotive Aftermarket Volume Sales
  • Brazil Automotive Aftermarket Revenue
  • Brazil Automotive Aftermarket Analysis
  • Brazil Automotive Aftermarket Sector Forecast
  • Brazil Automotive Aftermarket Industry Competition
  • Brazil Automotive Aftermarket Industry Future Outlook
  • Brazil Automotive Aftermarket companies
  • Brazil automotive Aftermarket Industry Trends

To know more, click on the link below:

https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/automotive-aftermarket-in-brazil/143974-100.html

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Ken Research

Ankur Gupta, Head Marketing & Communications

sales@kenresearch.com

0124-4230204

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