Automotive Industries

The automotive industry in Brazil started in the 1920-1930s as CKD units imported from the US by Ford and GM. During the 1950-1960s, strong incentives were made by the federal government for the local production of complete build-up units. Companies such as Daimler (Mercedes), General Motors, Ford, Volkswagen, Willys Overland, Vemag, Simca, Scania Vabis and Toyota established manufacturing plants in the greater São Paulo metropolitan area. Nationalisation of components was high from the beginning and quickly reached 100%. These companies understood the importance of having strong local engineering contacts, due to the peculiarities of country conditions and markets.

Other manufacturers later came to Brazil, establishing plants in other states and cities outside São Paulo. Fiat and Volvo (trucks) came during the 1970s, followed by Honda, Nissan/Renault, Peugeot Citroën, Iveco and Mitsubishi. From the first-comers, Ford, GM, VW, DaimlerChrysler, Scania and Toyota remain. Bus body builders such as Marcopolo, Ciferal, Comil, and others, complement the market.

Agriculture, construction, and off-road manufacturers include AGCO, Agrale (a Brazilian company that also makes trucks and busses), CNH, Caterpillar, John Deere, Komatsu, Valtra, and Volvo. Motorcycle and scooter manufacturers include Honda, Sundown, Kasinsky, Yamaha, Agrale and Harley-Davidson. 

The auto parts industry is consolidated with all large multinational groups are present: Bosch, Dana, Delphi, Visteon, Siemens, Valeo, Krupp, Denso, Marelli and others. Second and third tier companies are generally Brazilian and raw material producers are a mix of local and international companies.

See the Useful Links section for related links