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Automotive industry in Brazil

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Identify and discuss strategic trends and issues facing the automotive industry in Brazil.

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AUTOMOTIVE INDUSTRY IN BRAZIL: TRENDS AND ISSUES

Brazil has become the 4th largest automaker in 2011 and has been competing well with Japan, another known automaker in the world. This performance of Brazil has been manifested despite an increase in auto loan rates from the previous year's 22.8% to this year's 30%.
http://www.scotiacapital.com/English/bns_econ/bns_auto.pdf

Highlighting the contribution of Brazil in the total car sales of South America is shown in the following table:

Table 1. Car Sales in Millions of Units
PERIOD COVERED SOUTH AMERICA BRAZIL Percentage
1990 - 1999 1.64 0.94 57.32
2000 - 2007 2.19 1.37 62.56
2008 3.70 2.23 60.27
2009 3.93 2.53 64.38
2010 4.27 2.67 62.53
2011 4.74 2.91 61.39

Table 1 indicates that since 1990 to the present, major part of South American total car sales has been contributed by Brazil.

Among the other trends highlighting the factors relevant to the performance of automotive industry in Brazil are as follows:

1. Automobile production in Brazil is forecast to ...

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