Action encourages and strengthens exports of the Brazilian auto parts industry and offers funds for boosting sales abroad in the next two years

In June 2023, the National Association of Brazilian Auto Parts Manufacturers (Sindipeças) and the Brazilian Trade and Investment Promotion Agency (ApexBrasil) officially renewed their agreement for the 14th time to continue the activities of the Brasil Auto Parts Project. This partnership aims to boost exports from Brazil’s auto parts industry with a view to strengthening the sector and expanding its international presence.

The institutions, which have been partners for more than twenty years, signed an agreement that will be valid for the 2023/2024 biennium. By the terms of the agreement, the agency will make funds available for investments in major trade fairs, business missions, business roundtables, and other key activities, with a view to opening doors for global negotiations and partnerships.

Previous achievements from Brasil Auto Parts demonstrate the effectiveness of this joint action between the state and the private initiative. In the last agreement (2021/2022), 218 companies received the support of Brasil Auto Parts; they managed to export 263 different types of products and had a revenue of USD 1.2 billion, an increase by 15% compared to 2020.

According to Fernanda Garavello, coordinator of BAP, agreements are renewed every 24 months and have been very successful. “This cooperation represents continuing export efforts, and it helps Brazil to be recognized as a reliable supplier in the world’s auto parts market. With this support, we strengthened our sales promotion, business intelligence, and capacity building activities, which allows us to reach new levels in foreign trade and consolidate the position of the Brazilian industry in this scenario”, she explains.

The purpose of the agreement is to make the participating companies more competitive and mature in their export capacity, as well as to promote the image of the segment and of Brazil abroad, showcasing the global quality standards of local auto parts. The project brings the advantage of offering qualified manufacturers to those who purchase from Brazil.

“Our goal is to consolidate Brazil internationally as an alternative supplier to other players, one that has high quality and cost-effective products and solutions,” Garavello points out.

The strategic planning for the biennium included activities in previously prioritized markets, namely Argentina, Chile, Colombia, Germany, Mexico, Peru, South Africa, and the United States. Additionally, five other countries were selected as secondary markets: Australia, Bolivia, France, the United Arab Emirates, and the United Kingdom.

To define strategies, each action of the project is carefully evaluated by ApexBrasil and discussed with the Project Management Committee. Read below for more details on the activities that have been and will be carried out soon.

The first three events of the 2023/2024 biennium have already been held, with significant results to the participants of Brasil Auto Parts

In this first semester of 2023, the trade fairs in the automotive sector in Latin America proved to be excellent opportunities for Brazilian companies seeking to expand their business internationally. Three major events occurred during this period: Automec, in Brazil; ExpoPartes, in Colombia; and INA PAACE Automechanika, in Mexico.

Twenty-eight Brazilian companies were present at the ExpoPartes, held in Bogotá, Colombia, between June 21 and 23, 2023: ABR, Biagio, Filtros Vox, Hengst, Hutchinson, IABV, Indisa, Irma Cestari, Kostal, KSPG, Maringá, Metalmatrix, Mobensani, Orbi, Orgus, Positron, Pradolux, Quinelato, Ranalle, Rainha das Sete, Reserplastic, Retin, RIO Riosulense, Suspentech, Suporte Rei, TSA, Vannucci and Viemar. They all took the opportunity to establish business connections in a promising market. During the three days of the event, more than 1,000 business contacts were made - 776 of them with potential new customers. This activity has resulted in an estimated total revenue of USD 2,165.010, and expectations for the next 12 months point to an even higher figure, reaching USD 6,075,000.

In addition, ExpoPartes allowed Brazilian companies to interact with people from several countries, including Colombia itself, Costa Rica, Ecuador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Dominican Republic, and Venezuela.

The testimonials of participants and visitors, showed that satisfaction was unanimous.
"I have been participating in the events promoted by BAP for almost 15 years, and I dare say that this was one of the best in terms of organization and opportunities," says Wilson Constantino, the representative of Viemar.

INA PAACE Automechanika, held in Mexico City between July 12 and 14, 2023, was also very interesting for Brazilian auto parts companies. The fair opened new opportunities for the 22 companies present in the pavilion organized by BAP: Biagio Turbos, Brex, Centralsul, Continental Parafusos, DNI, FARJ, Irma Cestari, Indisa, KSPG, Metalmatrix, Metalúrgica Iguaçu, Maringá, Mobensani, Ranalle, Riosulense, MIC, Orbi Química, Partium, Rainha das Sete, Tecfil, Suporte Rei and Track Acessórios Automotivos. During the three days of the event, 485 business contacts were made - 390 were new ones. The business deals made at the fair amounted to USD 1,191,000, and estimates for the next 12 months indicate revenues of USD 3,142,000.

In addition to Mexicans, INA PAACE Automechanika has attracted visitors from several countries, including Argentina, Colombia, Chile, Guatemala, Honduras, Peru, the United States, and Venezuela.

The presence of the public and the attendance to the fair were praised by representatives of Brazilian companies. “The quality of the visitors was one of the highlights of this fair,” says Fernando Frugis, from Orbi Química. The expressive participation and the continuous interest of companies in returning to future editions, clearly show that these events can bring Brazil into the spotlight in international markets, boost business opportunities, establish new partnerships, and strengthen business relations.

Automechanika Johannesburg, South Africa, September 5-7, is the next event on the Trusted Partners calendar. Check out the full list of events for the biennium:
<> 13th Business Round - Brasil Auto Parts, Brazil, October 2-6, 2023
<> AAPEX Las Vegas, USA, October 31 to November 2, 2023
<> Agritechnica Hannover, Germany, November 12-18, 2023
<> Trade Mission in Chile, first half of 2024
<> Automechanika Buenos Aires, Argentina, April 10-13, 2024
<> Latin Parts Expo, Panama, July 31 to August 2, 2024
<> 14th Business Round - Brasil Auto Parts, Brazil, 2024 (date to be confirmed)
<> Automechanika Frankfurt, Germany, September 10-14, 2024
<> AAPEX Las Vegas 2024, USA, November 5-7, 2024

Metalmatrix invests in development, automation, and presence in international events to compete in a high-value segment of the auto parts industry

For more than 20 years, Brazil’s Metalmatrix has been manufacturing clamps with high safety and quality standards, as well as innovation, for the automotive, agricultural, metallurgical, electric, shipbuilding, and construction industries, and for trade at large. The company exports to more than 10 countries. Its products are ISO 9001 certified, comply with the IATF 16949 standard - which is specific to the automotive industry - and ensure sustainability throughout the production chain.

Its export history began to be written through a partnership with another company in the group, which was already a supplier to Uruguay. After successfully exporting to the neighboring country, it decided to expand to other markets. It had sales agents at that stage, but in 2022, an internal team was set up to dedicate to the process. Latin America is still the top market for external sales, but new destinations have been added to the company's portfolio.

About six years ago, when Metalmatrix joined Brasil Auto Parts, it started to participate in all scheduled international events, and it has since been to several countries, especially Germany, the United States and Dubai, which aggregate regional markets.

According to the company’s CEO, Cristiano Grillo, “it is a strategic decision to invest in development, automate processes, improve quality, and seek partners who value a world-class product.” For Grillo, having a positive assessment in audits, such as the one recently made by an American client, is an achievement to be celebrated. “We are getting approval and international recognition of our product, and that is what will take us beyond,” he adds.

Currently, as a way of proving that it produces robust automotive parts, the company is participating in various sporting events, for example, the HB20 Formula Hyundai and the Copa Truck, where it can show how resistant its clamps are for competitions. “We’re going to invest more and more in developing our portfolio, and in the future, we’ll take this experience to another level. You’ll see a car that is 100% Metalmatrix”, he promises.

To learn more about trusted vendors from Brazil, please visit: Sindipeças.

Agreement between Mercosur and the European Union

The negotiations for the conclusion of a free trade and investment treaty between the two trading blocs were broken off and resumed in the course of twenty years, and they were reactivated after the new Brazilian federal government took office in 2023. During this period, the terms and conditions of the agreement were discussed to promote trade facilitation and cooperation among the nations involved. The main goal of the treaty is to boost trade of goods and services, as well as to encourage mutual investment and promote economic integration between Mercosur and the European Union.

When ratified, this agreement could bring clear advantages for the auto parts industry, such as gradual elimination of tariffs and inclusion of the whole industry, with few exceptions. Trade negotiations would also become more transparent, ensuring predictability and horizontality. Although there are some obstacles, such as the EU’s environmental requirements, and cultural diversity, in general, it is firmly believed that this agreement can bring benefits that will enable the design, implementation and management of joint programs and projects, and promote the exponential growth of bilateral trade relations.