The automotive industry in Brazil has grown immensely since year 2000 and now represents around 5% of the country's GDP. It is highly dynamic and counts on the presence of nearly all the main international players, both OEMs and Tier 1 companies. An important issue in the industry is the legislation obliging a minimum of 60% of local content of the vehicle in order to obtain favorable financing to facilitate sales as well as qualify to have lower federal VAT taxes thus diminishing the final price to the end user.  As a result the OEMs give preference to suppliers that have a local presence in Brazil.

 

The Automotive Business Practice is one of the main business practices of Southpartner, and our team has executed various projects for foreign and Brazilian Tier 1 and Tier 2 suppliers. Drawing on our long experience and wide contact network in the Brazilian automotive industry, we can help your company in a variety of ways to successfully enter this strategically important market, including:

  • Comparing and evaluating different entry strategies
  • Formal company establishment (all legal aspects)
  • Opening the “right doors” in the main OEMs
  • Finding a local partner
  • Commercial Representation
  • Identifying acquisition targets
  • Company valuations for M & A
  • Green/brown-field start-ups
  • Local suppliers development
  • Developing local aftermarket (AM) dealer network

 

By working with Southpartner, your company will be able to minimize the investments needed whilst shortening the time necessary to successfully pass the hurdles involved in starting up operations in Brazil. 

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