Exploring Brazil’s Auto Parts Aftermarket and Economic Landscape

0
0

Economic Overview

Brazil, the largest country in South America, is home to 215 million people with a real GDP per capita of USD 8,917. As a large federal country, Brazil is comprised of the union (federal government), 26 states (plus the Federal District), and over 5,500 municipalities. Despite its diversity and economic potential, racial and gender discrimination persist as systemic barriers, limiting opportunities for many individuals and families to break the inter-generational cycle of poverty.

Auto Parts Aftermarket in Brazil

The Brazilian automotive aftermarket is experiencing significant growth, driven by the increasing average age of vehicles and the rising number of cars on the road. As vehicles age, the demand for replacement parts naturally increases, providing a boost to the aftermarket sector. Vehicles older than ten years are particularly prone to parts failure, creating significant demand for filters, brake parts, clutch parts, tires, batteries, and more.

Key Insights into the Auto Parts Aftermarket

Market Size and Growth

The Brazil Used Car Market size is estimated at USD 151.72 billion in 2024 and is expected to reach USD 197.75 billion by 2029, growing at a CAGR of over 4% during the forecast period (2024-2029). This growth underscores the robust demand for auto parts and accessories needed to maintain and service an aging vehicle fleet.

Key Economic Indicators

Population: 215.3 million

GDP Annual Growth: 2.9%

GDP Per Capita: USD 8,917.67

Inflation Rate (2022): 9.8%

Interest Rate: 10.5%

Government Debt to GDP Ratio: 72.87%

Exchange Rate: 1 USD = 5.14 Brazilian Real

Import Tariffs: 10% to 35%

Transportation

By Air: The quickest way to get from Pakistan to Brazil by plane takes about 23 hours 42 minutes, departing from Jinnah International Airport (KHI) and arriving at Guarulhos – Governador André Franco Montoro International Airport (GRU).

By Sea: Shipping from Pakistan to Brazil takes about 34 days 11 hours, departing from Karachi Port (PKKHI) and arriving at Rio de Janeiro (BRRIO), with vessels departing 2-4 times a week.

Key Events in Brazil’s Auto Parts Sector for 2024~2025

Upcoming Exhibitions

  • Expo Peças 2024
  • Date: September 5-7, 2024
  • Details: Automobile, car accessories, automobile engineering, trucks, cars, automation industry, automotive.
  • Location: Centro de Convenções de Goiânia, Goiânia, Brazil
  • Website:Expo Peças
  • Agrishow 2025
  • Date: April 28 – May 2, 2025
  • Details: The biggest and most important agricultural technology trade show in Brazil, and one of the largest in the world.
  • Location:Recinto de ExposiçõesAgriShow, Ribeirão Preto – SP, Brazil
  • Website:Agrishow
  • SalãoDuasRodas 2025
  • Date: October 2025 (Exact date TBA)
  • Details: The main motorcycle trade show for Latin America, featuring test rides, off-roading, urban mobility, lifestyle arena, oval track, customization arena, and more.
  • Location: São Paulo Expo Exhibition & Convention Center, São Paulo, Brazil

For businesses looking to enter or expand in the Brazilian auto parts aftermarket, these exhibitions provide excellent opportunities to network, showcase products.

List of products at 6 digits level imported by Brazil in 2022

detailed products in the following category: 8708 Parts and accessories for tractors, motor vehicles for the transport of ten or more persons, …

Sources: ITC calculations based on Ministério do Desenvolvimento, Indústria e Comércio Exterior statistics.

Mashood Khan
Director – Mehran Commercial Enterprises
Expert Auto Sector / Former Chairman PAAPAM

This article has been published in Automark Magazine’s July-2024 printed edition.