Brazil's auto parts supply has a lot of investment space

Brazil's domestic auto market is in short supply, and auto import pressure has increased. The direct reason for this is the severe shortage of Brazilian auto parts supply.

Leticia Costa, Director of PradaAssessoria, a Brazilian automotive consultancy, said: “A lot of people are only concerned about the impact of raw material prices on auto parts supply, but they have overlooked the fact that Brazilian auto parts supply chain is not competitive as a whole.”

Paulo Bedran, an official from Brazil's Ministry of Commerce and Industry Development, said: "The Brazilian government is actively working hard to provide low-interest loans for auto parts makers. If we do not pay attention to the development of the parts supply chain, we will become another Belgium that will only assemble cars."

Ivan Ramalho, another Brazilian government official, said: "The total value of auto parts in Brazil this year will reach 45 billion rials (about $25.6 billion), half of which will be imported from abroad. On the positive side, this shows that Brazil The auto parts industry still has a lot of investment space."

Osias Galantine, purchasing director of Fiat Brazil, said: “Brazilian component suppliers need to modernize their production and increase the quantity and quality of their products to meet the needs of the automotive consumer market in Brazil.”