Cláudio Sahad is the new president of Sindipeças and has assumed the role of leading the adaptation of the Brazilian auto parts industry to the new times

Sahad, elected for the 2022-2025 term, intends to carry on with the work that previous presidents had been doing to face the challenges of the sector - for example, decarbonization of vehicles, the business environment, and the need for investment. To achieve this goal, he wishes to leverage the fact that the entire production chain is committed to evolution and use tools such as technical knowledge, proactivity and group decision-making.

Given the current disruption of the automotive chain and the countless technological changes, he will focus on small and medium-sized companies by providing them with information and encouraging continuous improvement. “We need to adapt to changes to become more competitive, invest in qualification and work with the main players in the sector to enhance local production”, Sahad says.

In this interview, the new president talks about what Brazil has to offer and how importers can benefit from his management.

1) Based on your experience, what does the auto parts sector have to offer to those interested in importing from Brazil?
The Brazilian auto parts industry is internationalized. Our base is formed by both domestic and foreign capital companies. The largest multinationals in the sector are part of our base. In addition, we are one of the countries with the largest presence of different automakers. We have also been traditional exporters for decades with wide experience in the foreign market.

2) How committed are you to encouraging and increasing exports in the sector?
We will continue to perform all current activities that encourage the internationalization of Brazilian companies, which brings direct benefits to those who buy from Brazil. The most important initiative, obviously, is the Brasil Auto Parts project, a long-lasting partnership between the National Association of Brazilian Auto Parts Manufacturers (Sindipeças) and the Brazilian Trade and Investment Promotion Agency (ApexBrasil), which made it possible for many small and medium-sized companies to showcase their products in the international market.

3) How do you believe the Brazilian auto parts industry will gain international competitiveness?
Our companies are very competitive from the inside, but they have to deal with problems in the business environment, which depends on macroeconomic actions to improve, for example, structural reforms and increased logistics infrastructure. If we improve this scenario, we will reduce costs for companies, and competitiveness will then increase.

4) In your opinion, what is Brazil’s main advantage over competitors from other parts of the world?
In general terms, we have long experience in the sector, there are many automakers in the country, as I said before, and we have a natural aptitude to produce auto parts.

5) What message would you leave for importers who do not yet know the Brazilian auto parts industry?
I invite you all to observe Brazil’s capacity to produce auto parts and its wide experience in exporting components to around 180 different markets around the world. At Sindipeças, we keep up with major changes in the mobility industry, and we do several activities to keep our members aware and ready to be a part of global value chains.

Business intelligence and trade promotion initiatives enabled BAP members to export despite the difficulties faced in the world economic scenario

The first half of 2022 at Brasil Auto Parts was marked by a mix of business intelligence and trade promotion activities. Studies - such as the market research on Spain - and business intelligence reports were regularly produced. Also, two trade missions were held in Peru/Ecuador and Mexico, with face-to-face business roundtables.

Twenty-three companies participated in the mission that took place in Peru and Ecuador, and they made 559 business contacts. The event is expected to help companies make good deals.

“We participated in a trade mission with Brasil Auto Parts for the first time. The Sindipeças team did a great job putting the event together. They supported us all along the way, with a prompt response. We had a full schedule of meetings, so we could reach a large number of prospects that we most likely wouldn’t have been able to without the mission. We think it was a very productive event and one that we hope will help us have good business results in the short/medium term”, says Ana Claudia Pelinson de Almeida, Foreign Trade manager at Irma Cestari, a company that has been participating in the project for three years.

“We are very pleased with the first international event that we attended with Brasil Auto Parts. In both markets, Peru and Ecuador, our company does not have direct customers. Participation in the event provided us with several new contacts, brand awareness, in addition to new business opportunities, since most of the companies we had meetings with were interested in our products”, says Helen Orlandi Rangel, Exports analyst at Engatcar, which has been a member of Brasil Auto Parts since January 2016.

The trade mission that took 20 companies to Mexico also achieved important results, with good prospects for trade relations between the participating countries.

Importer Ricardo Mendez, from Mexican company Cables y Controles Mezer, was one of the businesspeople participating in the roundtables, and he gave his opinion on Brazil’s on-site presence: “We’ve made so many contacts that were all are of great interest to us. Thank you for the opportunity.”

Brasil Auto Parts keeps doing focused work, and this edition shows what is coming up in the second half of 2022.

Brasil Auto Parts will participate in exhibitions and trade promotion events in Germany, Spain, Argentina, the United States and the United Arab Emirates

In the second half of 2022, in addition to the daily activities to support exports and engagement in sectoral agendas, BAP’s calendar includes a trade mission to Spain and participation in major industry fairs around the world.

The first event will be the Automechanika Frankfurt fair, to be held in September 13th to 17th. After a forced pause, this edition of Automechanika Frankfurt marks the return of the fair to its original on-site format, but with an online complement. Although a mixed event (online and on-site) was held for a limited audience in 2018, this time the fair will take place with full capacity. This world-leading trade fair is considered by experts as an international meeting point for industry players, dealership traders and maintenance and repair companies, as it provides an important platform for the transfer of business and technological knowledge.

Rommel Saraiva, Global Sales and Marketing Manager at Durametal, tells us about the company’s experience in participating in the fair over the years, in partnership with Brasil Auto Parts, and his expectations about returning to Frankfurt after 4 years.

“Being part of Brasil Auto Parts really helps us as exhibitors at major international fairs, such as Automechanika Frankfurt. Although we have previous experience in exports, being inside the Brazilian pavilion takes us to the next level in the industry and reduces our costs with this type of trade promotion initiative. Durametal has been in the project for six years, and we have every expectation that large events will return to a face-to-face format. For Automechanika Frankfurt, the company is prepared to showcase its commitment and quality, overcome the challenges of negotiating in the current market scenario and take advantage of the opportunities that only personal interactions can offer”.

Also in September, a trade mission to Spain is planned to take place from the 20th to the 23rd.

After that, Automechanika Buenos Aires will be held in October 11-14. This is Argentina’s major international fair for the automotive and aftermarket industry, and BAP will participate again after a four-year gap.

AAPEX Las Vegas will take place in November 1-3. It is the main event for the global automotive aftermarket industry, a segment that has a turnover up to $1.6 trillion a year.

Also in November, from the 22nd to the 24th, Automechanika Dubai wraps up the calendar year. Focusing on the Middle East and North Africa, this event has been consolidated as a business platform for Brazilian companies.

Click here to see BAP’s updated calendar.

By implementing Industry 4.0, the company has empowered the team and made faster and more assertive decisions

Mangotex, a manufacturer of high-tech hoses and other items for the automotive industry since 1965, began investing in an Industry 4.0 project in 2018. For those unfamiliar with the term, industry 4.0 consists of a wide system of advanced technologies, such as artificial intelligence, robotics, the Internet of Things (IoT) and cloud computing. It has been transforming forms of production and business models in Brazil and worldwide.

At Mangotex, it all started when the company participated in a trade mission to Germany to understand how the country approached this theme. Back home, it started a pilot project (called Inova Sindipeças) with the Institute for Technological Research (IPT) of the State of São Paulo. Mangotex’s first action was to implement a 100% digital production data collection system. It provides an overview of the entire factory. Felipe Zaidan, Purchasing, Export and Engineering manager at Mangotex, explains:

“Beforehand, the production process was managed on the basis of data from the previous day. We would collect four or five indicators, on paper, and then take the necessary measures. With digitalization, we were able to monitor data in real time, using thousands of variables. This way, we became more agile and, consequently, had productivity gains.”

The major results are clearly noticeable in the company’s performance. Detection of improvement opportunities using traceability, brings high precision to the process. “Previously, reports were made available by work order or by shift. Now traceability can be done piece by piece, on the spot, improving quality control and customer service”, Zaidan explains.

To get to this point, Mangotex has invested time and resources. “In the market, there is a concept that Industry 4.0 is implemented through automation and high investments. But it’s much simpler, and it can cost a lot less, too. We’ve done a lot of training, formed a multidisciplinary team to run the project, supported one another on the opportunities offered by Sindipeças and other partners, like research institutes, the National Service for Industrial Learning - Senai and the Brazilian government. And now we’re already reaping the benefits”, the executive stresses.

The successful implementation of the industry 4.0 project at Mangotex is underpinned by the vision that process improvement requires continuous investment. “We have access to real-time information, which makes a huge difference. And we don’t want to stop here. We already have another pilot project now for inspection of parts using artificial intelligence. For a medium-sized company like ours, this is a great competitive advantage”, Zaidan explains.

To learn more about innovative initiatives of the Brazilian auto parts industry, visit the page of the Inova Sindipeças's program (only in Portuguese).

The "Brasil" Brand

Just as companies have an identity, countries also introduce themselves through branding - a set of actions aligned with the brand’s positioning, purpose and values. In the world of international business, the “Brasil” brand plays the role of representing our country. Created to enhance the impact of initiatives supported by ApexBrasil in trade events, fairs and exhibitions, it reinforces our Brazilianness and conveys a powerful and inspiring message.

The “Brasil” brand shows our country beyond stereotypes, as well as its ability as a business partner and its willingness to establish enduring and fruitful relationships. Next time you find Brasil Auto Parts around the world, bear in mind that there is an entire nation supporting our initiatives.