In the pavilion organized by Brasil Auto Parts, which was the scene of numerous trade negotiations, there was a record participation of 52 companies

Exhibitors from 18 countries participated in the 2024 edition of the fair, a significant increase of 26% compared to 2022. Brazilian companies benefited from the attendance of more than 27,000 visitors from 35 countries and made 2,106 business contacts, 1,268 of which were new ones. They earned USD 6.6 million in business deals during the event and an additional revenue of USD 18.380 million is expected over the next 12 months.

The fair was covered by the specialized press of Brasil and Argentina, and more than 30 articles were published. This clearly shows the importance of the event for the strategy of the participating companies, since the neighboring country is the main destination of Brazilian exports. In 2023, the Argentine market accounted for 36.7% of Brazil’s total foreign sales in all segments, reaching more than USD 3.3 billion in business deals.

To capitalize on this moment of economic opening and further strengthen the presence of Brazilian companies in Argentina, events parallel to the fair were organized by Brasil Auto Parts, with the support of the Brazilian Trade and Investment Promotion Agency - ApexBrasil and the Embassy of Brazil in Buenos Aires. One of the events was the seminar “The auto parts industry and the Brazil-Argentina trade relationship: panorama and perspectives”, held at the headquarters of the Brazilian Embassy. The schedule of activities includes a visit to the digital platform “Mercado Libre”, as well as discussions about possibilities for online sales of auto parts, meetings with representatives of the industry in Argentina, and rounds of conversation between the exhibiting companies and the Ambassador of Brazil in Argentina, Julio Bitelli, on the occasion of his visit to the pavilion organized by BAP at the trade show.

“The automotive and auto parts industry is an excellent example of the integration of production chains in the region and is at the heart of trade relations between the two countries. Therefore, the Embassy of Brazil in Argentina committed itself to support the Brazilian participation in Automechanika Buenos Aires and organized a seminar to inform Brazilian exhibitors about customs, foreign exchange, and trade issues related to bilateral exchanges”, says Leonardo Valverde, head of the Trade Promotion and Investment Sector (SECOM) of the Embassy of Brazil in Argentina.

“The perception of Brazilian exhibitors at the fair prompted them to leave their comfort zone, and everyone seemed to be willing to do so. A more competitive market urges Brazilian companies to be more efficient and improve the quality of their products, with a view to maintaining their leadership in Argentina and competing in other international markets, such as Europe and the United States, an expectation that is heightened by ApexBrasil,” published the website Move News.

In general, the record participation of Brazilian manufacturers is a sign of the optimism regarding the recovery of the economy and the future of Argentina, which is crucial to the export strategy of the auto parts industry. “From a strictly economic-commercial point of view, the new government of the country made positive changes. Import licenses have been virtually eliminated and access to the exchange market has been facilitated, which can strengthen trade between the two countries”, says Valverde.

To watch the above-mentioned video about the seminar, produced by the Embassy of Brazil in Argentina (available in Portuguese only), please visit: https://www.instagram.com/p/C5oqFL4vWvf/?igsh=cGE4Yzk2cW9nZGh1.

In the continuous effort to promote Brazilian auto parts, the next trade fair on the calendar of Brasil Auto Parts project will be the Latin Auto Parts Expo, scheduled to take place from July 31 to August 2, in Panama. A total of 23 exhibitors have already confirmed their presence in the Brazilian pavilion. See you all there!

The e-commerce of automotive parts in Brazil is constantly growing and offers several opportunities for entrepreneurs and consumers

DNI, one of the participants of Brasil Auto Parts and a leader in the manufacture of automotive electronic products, electric conductors, and safety solutions in Latin America, with presence in more than 30 countries, recounts its experience in using digital platforms to sell auto parts.

It is exactly the belief in this change in consumer behavior that led DNI to explore opportunities to sell auto parts online also abroad, through partnerships with Mercado Livre in other countries. “We’re planning to have our online store running in Argentina still in 2024. And negotiations with Mexico are progressing,” says Ueta.

Statistics confirm the success of DNI’s strategy, with a remarkable growth in digital purchases in recent years. In Brazilian e-commerce, total sales reached R$ 185.7 billion in 2023, according to the Brazilian E-commerce Association, accounting for a growth of more than 10% compared to 2022. "It is noteworthy that this sales channel was greatly enhanced in the post-pandemic period, as several customers and distributors have adopted this business model. For DNI, online sales encouraged the development of new product strategies and, most importantly, boosted sales of low turnover items in the traditional market”, says Ueta.

For companies that seek to strengthen their sales in this segment, the executive recommends that they establish strict requirements, high quality standards, and reliable partnerships, focusing on facilitating the purchase process and developing products that can meet customer demands. “It is more than expected that the digital market will continue on the rise. In this way, we must take advantage of the opportunities offered by this digital trend, which has come to stay,” he says.

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The 2024 edition of the reference guide of the Brazilian auto parts industry is already available

The Yearbook of the Auto Parts Industry is one of the main sources of information about the Brazilian auto parts industry and the most complete publication with official data collected and consolidated by the Economic Consulting Agency of the National Association of Brazilian Auto Parts Manufacturers - Sindipeças. It contains supporting information for companies and trade associations of all links in the automotive production chain and for government agencies, financial agents, universities, researchers, students, and journalists.

This is some of the relevant information in the 2024 edition:

• Consolidated nominal revenues of companies associated with Sindipeças from 2017 to 2023;
• Investments made by these companies between 2017 and 2023;
• Employment level from 2020 to 2023;
• Brazilian auto parts trade balance from 2017 to 2023;
• Manufacture and sales of vehicles in Latin America, Mercosur, and Brazil, in particular, ‘as well as export data, in 2023.

To read many other data in the Yearbook and learn more about the Brazilian auto parts industry, please visit website or send a message to [email protected].

The Latin American market is the gateway to Brazilian exports and has significant potential for even more promising partnerships

Eliseu Sathler, Director of Mayphe Sales International, is a professional who is proud to have been working in the export of Brazilian auto parts for more than three decades. He is our guest in this edition and will talk about the Latin American market - LATAM. As a gateway for beginners to international trade, the region has great potential to be explored. “We are geographically close to each other, we have very similar fleet, and we can achieve results faster”, says Sathler.

“Those who think this market can be neglected are mistaken. For example, although Chile is a great buyer of Brazilian exports and a member of Mercosur, it is totally open to imports, and there is a lot of competition to its market. The key to doing business with this country is to identify potential distributors, analyze competitors, and try to offer favorable conditions regarding prices, payment deadlines ,etc.”, says Sathler.

Based on his professional experience over more than 30 years, he believes that the best way for companies to expand in Latin America is to seize the advantages of geographical proximity, making their brand known and their presence felt through personal visits or events. “Having well-defined distribution channels, generating trust, and being able to supply the market quickly, can be competitive advantages when closing deals with our neighbors”, he says.

As an export manager for several companies, such as Schadek Automotive, ABR Juntas, Dellarosa, or Molas Fama, Sathler has always treated this market with the respect and seriousness it deserves. “When we implemented Schadek’s export department, we did a great job in the region. We focused on distribution and delivery. We consolidated our business first in Latin America and then we entered more competitive markets such as Europe and the United States. And this strategy has been successful to this day”, he says.

Our interviewee reports that Brazil has a great capacity to export, and targeting at nearby countries can produce really valuable results for the auto parts industry. “And this is also advantageous for the countries that buy from us, because they can rely on a complete supply chain nearly next door,” Sathler concludes.

New Industry Brazil

With the aim of boosting economic growth through the manufacture of products in Brazil until 2033, the Brazilian government has recently launched the program Nova Indústria Brasil* ("New Industry Brazil"), which uses traditional public policy instruments, such as subsidies, tax incentives, low interest loans, and expansion of federal investments to support the modernization of the country’s industrial park.

The funds allocated to the program amount to 300 billion reais. In addition to funding for modernization of manufacturing and automation units, there are several other options available for the Brazilian auto parts industry to promote green mobility, decarbonization, energy transition, and innovation through the Programa Mover (within in the program Nova Indústria Brasil).

Delile Macêdo Jr., Institutional and Government Relations Advisor for Sindipeças, argues that the organization has played a significant role in supporting the formulation of sectoral programs, addressing demands, and actively contributing to the industry’s development. “We expect to really benefit from the program, enter into agreements, and take our industry to a new level,” says Macêdo.

Source: Agência Brasil