Brazil is the world's 5th largest country, with 8.515 km2 and have a population of over 200 million (again the world's 5th). In the last decade exploiting vast natural resources and a large labor pool, has become the South America's leading economic power and regional leader, one of the first in the area to begin an economic recovery. This was enhanced by Mercosur, an economic and political agreement among Argentina, Brazil, Paraguay and Uruguay fixed in 1991. The rapidly GDP increase moved the country in the top global rank. In the 2010, its GDP, at purchasing power parity, of $ 2.172 billion was 9th in absolute. Highly unequal income distribution and crime remain pressing problems. Over 25 percent of population is still below the poverty limit. Today Brazil is “cool” as demonstrated by the unique fact it will host both the 2014 World Soccer Cup and the 2016 Olympic Games.
October 2013 Brazilian car sales were below analyst expectation falling 4.1% from year ago and keeping the cumulated performance below 2012. Fiat and Volkswagen had further lost share while new challenges arrive from Hyundai and Toyota, waiting for Chinese's.
INOVAR-AUTO project developed by the Brazilian Government was announced as a new benchmark to improve people quality of life and safety on cars. In reality, it is a pure protectionist action, using public budget to finance carmakers investments in local production. In name of Sovereign People.
Following the August drama, when market collapsed as never before in last decade, in September the light passenger vehicles Brazilian market posted a shy 5% recovery, thanks to Fiat rebates and growing performance posted by Ford, Toyota and Hyundai.
August 2013 will be remembered for the Brazilian car market as the deepest year-on-year decline of the decade. Market fell 23% from August 2012, pushed down by low private consumptions. Meantime, Chevrolet was able to confirm the second place, ahead of Volkswagen.
In July 2013, the Brazilian car market fell 7.8% with year to date sales, still positive by a little 2.4% from last year. After years of a dual leadership (Fiat and Volkswagen) the market is progressively changing and Chevrolet outpaced the German rival.
Following a really positive series, in June the Brazilian car market dropped 11.1% from last year, hit by lower consumer demand and by riots against the government economic policy. Ford Fiesta was the Winner of the Month, advancing in second place.
Light passengers market in Brazil confirmed in May its magic moment, advancing 9.5% from last year with year-to-date sales grew by 8.7%. Behind Fiat and thanks to an outstanding performance, Chevrolet has overtaken Volkswagen.
Following a first quarter below expectation, in April finally the light passenger vehicles market in Brazil posted a robust increase, gaining 29.3% from last year. Year-to-date sales were up 8.5%. The Big 3, Fiat, Volkswagen and Chevrolet are losing share.
March car sales in Brazil were down 5% from last year, with First quarter up 1.9% from last year. Top 3 brands market share is declining as new crowded competition among 49 players is transforming the country from cash cow to hard discount.
In February the car market in Brazil slipped 5.7% partially offsetting the cumulate gain from last year, now at 6.3%. Higher minimum wage and inflation should push market up. Hyundai recorded best ever volume and share driven by HB20 success.
Following a weak year end, the Brazilian car industry started the 2013 with a17.5% increase over last year. Fiat further improved confirming its magic moment in this market, while Volkswagen and Chevrolet were stable.
In December, the Brazilian car market surged 4.4% ending the year with a progress of 6.1% from the last year. Fiat, Volkswagen, Renault, Toyota and Nissan posted the all-time record volume. Volkswagen Gol strong on top of models.
Following the October boom, the Brazilian light vehicles market was slightly down in November (-2.7% from last year). Year to date sales were up 6.3% confirming the new all-time record volume achievement. Hyundai climbed in 6th place with record share.
The Brazilian light vehicles market continues its chaotic trend, generated by tax breaks ending, used by the government to push up the market. In October sales were up 23.9% from last year. Year to date sales were up 7.3%. Fiat maintained momentum and the share was close to 25%.