Brazil’s automotive industry (volume wise) ranks among top ten in the world. It has a big consumer base. In year 2005 Brazil’s automobile production recorded a growth rate of 3.2%. This calculation excluded figures for agricultural machineries and motorcycles.

Brazil automotive industry overview
Motorcycles and passenger cars account for lions share of Brazil’s automotive sales. Rising automobile sales figures in Brazil are well supported by availability of easy financing packages and improved road connectivity in sub-urban and rural Brazil. A host of financing bodies offer these financing packages. Brazilians mostly opt for flex fuel vehicles. Since these vehicles offer multiple choices of refueling systems. Flex fuel vehicles industry recorded a sharp growth in year 2006 aided by supportive government regulations regarding biofuel use. In recent times appreciation of its official currency has led to a fall in Brazil’s automotive industry. Large consumer base, wide spread affinity for Formula 1 racing, protectionist governmental policies are primary reasons for catapulting Brazilian automotive industry into a global first-rate automobile manufacturing sector. Brazilian automotive industry is virtually engine of growth for this Latin American nation. Globalization has ushered in major transformation in Brazilian automotive industry, particularly in product design process, supply chain management and value adding process.

Brazil automotive industry projections (2007-2010)

Light commercial vehicle sales will witness a greater rate than car sales in 2007-2010
Bus sales are projected to attain CAGR greater than 22.3% in same reference period
Flex fuel vehicles are estimated to record sales growth of AAGR of 15.67% in 2007 -2010 time period
Direct automobile insurance premium is estimated to be at BRL 27634 Million in year 2010
Hike in number of flex fuel automobiles in Brazil is estimated to push up ethanol production base, which is set to attain 442,000 Barrels/Day in year 2010.