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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 throw insights on current hot topics such as taxation policy revision and exit & entry of key players
The Brazilian automotive market is currently the 8th largest automotive economy in the world. Passenger vehicle sales in 2018 were just under 2.5 million units growing over 13.8% from 2017. It was one of the few countries in the world that registered such positive growth, especially amongst the 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 being 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 from them, 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 the 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 pro-activeness of the government, several major OEMs including VW, GM and Ford have exited the market threatening to derail the growth in the market.
Some of the key objectives for the research will be to provide a clear understanding on the following:
1. Market measurements and dynamics – Market size, Key players contributions, forecasting, and trends
2. Market Entry Options & Investment Plans – Discuss available options to enter Brazilian automotive market, Planned investments of major OEMs
3. Exit Strategies Of Key Automotive Players – Impact of exit on Brazilian auto industry and discussion on route adopted to exit
4. Inovar Vs. ROTA 2030 – Incentives and taxation policy
Some of the questions that this study will answer include:
- What are the impacts of new policy (ROTA 2030) that replaced Inovar Auto Directive?
- What are the expected transformational shifts in the next couple of years?
- Who are the dominant players in the market?
- How exit and entry of key automotive players impacting the market?
- What is the value of planned investments to be made by auto makers?
This research also provides insights into what the OEMs and the policy makers should consider in order to make the Rota 2030 plan 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.
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