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‘ROTA 2030’ To Revive Brazilian Automotive Industry
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The aim of the study is to research, analyze and forecast the movement of Brazilian automotive market based on the prevailing scenario. It also throws light on hot topics such as taxation policy revision and exit and entry of key players.The Brazilian automotive market is currently the 8th largest in the world. Passenger vehicle sales in 2018 were just under 2.5 million units growing over 13.8% from 2017. Brazil was one of the few countries in the world that registered such positive growth, especially amongst developing economies. In 2012, the government introduced its 'INNOVAR' program to boost the production of fuel efficient vehicles and motivate international vehicle manufacturers to invest in the country. This was primarily done through the process of managing tax exemptions for international companies. The program which expired in 2017, despite getting a lot of negative feedback, did manage to boost investments, production, and thereby sales in the country, bringing in more choice of vehicles and models. After the 'INNOVAR' program expired, the government instituted a new directive known as ROTA 2030. With the primary intention of focusing on energy efficiency and sustainability, this comprehensive economic platform was meant to progress innovation in areas such as research and development, vehicle safety, and logistics among others. This program was especially meant to push the industry to accelerate its development in the production of hybrid and electric vehicles. However, despite the government’s pro-activeness, several major OEMs including VW, GM, and Ford have exited the market threatening to derail the growth in the market. This research also provides insights into what OEMs and policy makers should consider in order to make the ROTA 2030 a success. Considering various factors including modernization of facilities, leveraging flexible policies and E.V. technology benchmarking, this research casts a wide net for anyone interested in the market and what the expected growth could be.
Some of the key objectives for the research will be to provide a clear understanding on the following:
Key Issues Addressed
Author: Jagadeesh Chandran
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