Aware of the need to interpret the numbers with caution, Sindipeças prepared a report in which it highlights the main points required for a sustainable recovery

With a skewed basis of comparison owing to the shutdown of automakers and social distance in large cities in 2020, the nominal net sales of the auto parts industry accounted for an increase by 96.8% in the first six months of 2021.

In the last 12 months - the period that best represents the performance of the industry, as it softens the impact on statistics arising from the pandemic of the new coronavirus - there was a growth of 40.0%.

Sales this year are expected to be 23.8% higher in comparison to last year. If this estimate is confirmed, the sector will have earned a revenue of US$ 31.0 billion by December, considering an average annual exchange rate of R$ 5.04 to US$ 1.00.

An improvement in the bottom line also means a gradual return to normality in foreign markets, despite the threat posed by the Delta variant of Covid-19. In addition, the exchange rate, which is very favorable for those who purchase Brazilian products abroad, should have a positive outcome on the trade balance. In the first semester alone, exports grew by 31.2%.

Carlos Eduardo Cavalcanti, Economics Advisor at the National Association of Brazilian Auto Parts Manufacturers (Sindipeças), explains that although there are uncertainties, studies have shown that the automotive industry should stay on the path of recovery. “We can’t slow down. While the pandemic is not completely over, we need to strengthen exports as a business strategy and seek alternatives in all active channels”, he points out.

Brasil Auto Parts, as part of its role, has kept its agenda focused on the delivery of information, commercial intelligence studies and ongoing actions to support Brazilian companies in providing high-quality service to international customers.

“The future scenario is worrying, but promoting competitive integration and encouraging innovation are the paths chosen by Sindipeças to help the Brazilian industry to become increasingly capable and robust. Although the pandemic is long-lasting and inputs are scarce, let alone the high prices of raw materials, the auto parts industry has been maintaining good results”, Cavalcanti underlines.

To read the full report, please visit: https://www.sindipecas.org.br/sindinews/Economia/2021/RPC_AGO2021.pdf.

Brasil Auto Parts has remained focused on business intelligence, planning and implementation of online activities during the pandemic, but that will change
from now on

As international events have begun to be held on-site again, the Brasil Auto Parts project has planned to be present at two international fairs in the next three months of the year. From 10 - 12 November, it will be participating in Expopartes Colombia, in Bogotá, and it will join Automechanika Dubai on 14 - 16 December. Participation in AAPEX Las Vegas, which also takes place in November, has been postponed to 2022. Brasil Auto Parts is a partnership between Sindipeças and Apex-Brasil (Brazilian Trade and Investment Promotion Agency), seeking to promote the exports of auto parts made in Brazil.

Virtual buyer projects were carried out the second half of the year.  For example, one of them was focused on the agricultural sector in Colombia, and one held business roundtables with Andean countries.

“From now on, we must increasingly evolve towards a model that mixes traditional commercial promotion initiatives, such as on-site presence at international fairs, and online activities. We believe that, this way, the results will be more interesting for the project’s participants,” says Fernanda Garavello Gonçalves, coordinator of Brasil Auto Parts.

In all events, safety protocols are being strictly adhered to and respected.

Check out our agenda on the website:
https://www.sindipecas.org.br/area-atuacao/?co=s&a=calendario-2020

Relevant for exports and interesting for those seeking the country as a partner, preferential trade negotiations benefit international business with Brazil

Sindipeças has partnered with Apex-Brasil to develop Brasil Auto Parts, a project focused on encouraging exports of locally produced auto parts. In addition, it has a department dedicated to foreign trade. The goals of Brasil Auto Parts are to inform the Brazilian government about the needs of the sector, advise companies on how to take advantage of trade agreements to which Brazil is a signatory, and offer them updated information on changes in import and export legislation.

Thanks to the synergy between the export support services within Sindipeças, Brazilian companies can better prepare for international events and negotiations.

“Trade relations with Brazil are facilitated by the permanent support of these two areas. Today, some agreements are particularly important, for example, the one signed with Argentina (ACE-14), which included preferential trade of heavy vehicles and their auto parts between Mexico and Brazil (ACE-55), and the ones negotiated between Mercosur and other regions, such as Southern Africa and the European Community”, says Rejane Darold, Foreign Trade Advisor at Sindipeças.

To find out if your country or region can benefit from trade agreements with Brazil, always consult the company you are contacting. Additional and official information is also available at the Brazilian Government’s portal: 
http://siscomex.gov.br/acordos-comerciais (in Portuguese only).

The company Attow Automotive, a Brazilian manufacturer of steering bars and tie rod ends for heavy vehicles, bets on excellent production processes to gain international market share

Founded in 2002 in the city of São Paulo, this medium-sized company, which earns a revenue of 25 million reais a year, previously operated exclusively in its market of origin. However, in 2017, it changed its working style, invested in product development and is now also present in the aftermarket. As a result, export opportunities began to arise, especially for trade with neighboring countries.

“We took advantage of the redesign of our business strategy to start exporting on a regular basis. At first, sales were occasional, but now we have the structure required to increasingly expand our presence in foreign markets”, says Osmar Fernandes, Attow’s sales manager.

As steering bars and tie rod ends are safety items, Attow’s is committed to high quality in all its processes. The company is certified by the National Institute of Metrology, Standardization and Industrial Quality (INMETRO) https://www.gov.br/inmetro/pt-br. Such certification is essential for manufacture and sales of this type of product in Brazil. In addition, Attow follows all the standards required by national and international legislation, and is ISO 9001 certified.

“Some countries recognize INMETRO’s certification, but we are looking for ways to enter also in markets that have specific certifications, such as Argentina. We wish to achieve our goal, that is, to earn at least 10% of our total revenue from exports”, Fernandes points out.

To contact Attow, please visit: https://www.attow.com.br/. The website is available in English and Spanish. Also, take the opportunity to check the full list of Sindipeças’s members.

What is the "Buyer Project"?

It is one of the sales promotion initiatives, in which buyers, distributors and importers of auto parts from the project’s target countries are recruited to develop a business agenda. In this type of event, meetings are held with Brazilian manufacturers, previously identified as possible suppliers, and previously selected importers. Business intelligence analysis and the interest of both parties are taken into account before companies are matched. At the same time, technical visits to local industries are scheduled. Currently, owing to the pandemic, the ‘Buyer Project’ also takes place online. All activities are supported by the Brazilian government, through Apex-Brasil, and are organized by sector projects, such as Brasil Auto Parts, without commissions or fees.