Brazil to Overtake Germany Vehicle Sales: Financial Times Report
A Financial Times report published today suggests that Brazil could overtake Germany in terms of vehicle sales as early as this year, depending on a predicted 20 per cent decline in Europe’s leading market. Last year, Brazil was the fifth largest market for new vehicles, buoyed by its increasing wealth based on resources, the newspaper says. Quoting senior analyst at PwC Michael Gartside, John Reed writes that the light commercial vehicle market is crucial to this prediction, with Germany still larger in terms of passenger car sales.
In 2009 Brazil saw 3.1 million light vehicles (cars and LCVs) sold, making it the fifth largest market behind China, the USA, Japan and Germany. Even if the country does not leap to fourth in 2010, it appears to have good prospects for sustained growth of 5 per cent per year, according to General Motors’ Jaime Ardile, quoted in the FT report. He also points to the football World Cup and the Olympic Games in 2014 and 2016 respectively as further proof of growing financial strength in the country.
Recent news from Continental and Michelin also suggests the Brazilian automotive market is to continue its upward trajectory, and tyre manufacturers are following the likes of Fiat and Volkswagen in ramping up their activities in the country. For example, tyrepress.com’s recent visit to Continental’s tyre factory in Camaçari, Brazil showed that the company now intends to further establish its deliveries to OEM customers. Continental already sees itself as well positioned in Brazil’s replacement tyre market holding a 4-8 per cent market share. Recent Michelin data says Brazil’s replacement market is growing 22.7 per cent and original equipment 60.1 per cent, contributing to year-to-date growth of 32.0 per cent and 55.6 per cent respectively.
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