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Credit release low-end purchasing power Brazil seminar trade-in





Rio South's oldest RIO Sul shopping malls, such a dramatic scene, when reporters picked up a pair of marked 9.9 real (local currency, the dollar is approximately equal to four Yuan) by havaianas-beach slippers ready to buy, the cashier asks whether prepared by instalments?

Brazil is a big gap between rich and poor, low-wage workers accounted for 60% of the population, resulting in a shopping centre are all in this installment of promotional merchandise.

In fact, the financial crisis, along with the credit system of relaxation, Brazil automotive market is in a period of rapid growth. This makes approximately 16% of Brazil consumers to buy a new car, this proportion is only 10%.

"Brazil in the next five years is a period of rapid economic growth, the World Cup and Olympic Games will be held here. "June 1, Brazil's President Lula told reporters that" Brazil is currently implementing social policies primarily tend to lower and middle relief, poverty reduction, education, health, etc. With economic development will lead to lower purchasing power. ”

2010 two-month figures show that Brazil has been restored to the automotive industry and similar levels in 2007, March the automobile sales rose 10%, Brazil this year that South America's largest economy is expected to more than Germany, has become the world's fourth largest auto market. Automotive consulting firm CSM worldwide analyst Fernando ・ Trou Kat is slightly (Fernando Trujillo) expects to 2016, Brazil's automobile production and sales of 2009 will be from 300 million to $ 450 million.

June 1, Michelin, Senior Vice President Claire ・ many RAND-Crozet (Claire Dorland-Clauzel) told reporters that the potential market potential, is the choice in Brazil Miqilinbibideng challenge held important reasons, this is China, the second will be held over the den challenge in developing countries.

But as the market recovery, automotive industry a new round of investment, have to fashion.

Then lift the investment

"We did a little late. "Michelin South America CEO Jean-Philippe Ollier had to admit. This has entered the Brazil market 30 years France tire companies have made until now to enter the field of car tires, will invest 4 million programme in Brazil to build the first four tyre factory; at the same time to save the energy required for the purpose than den challenge in delayed a year later also held as scheduled.

In March of this year, General Motors said, will be located in Brazil Sao Paulo State two factory invested 14 million reals (about 7.8 million) to expand the plant capacity and increase product lineup. Brazil's industrial output value since September 2008 downturn since, making General Motors in local had to yield reduction 50%. But then since Brazil government tax policy and the provision of public lending, automobile production in Brazil. Brazil is the General Motors following the United States and China's third largest national markets. Japan Honda Motor Company last year in Brazil domestic production and sales of small cars CITY, this is the main models of Honda CIVIC and FIT after the third paragraph in Brazil to local production of models.

Not long ago, Ford announced a $ 30 million investment scheme in South America. The implementation time is starting this year to 2015, which invested in Brazil than in last November's plan to increase the 20% to $ 25.4 billion. Peugeot Citroen Chief Executive Officer Philippe ・ Watt forest more recently announced that the next three years will be 8 billion investment in Brazil. Korea modern September this year, automobile plans to restart the Brazil plant construction project, the project last year was interrupted due to economic recession.

In Brazil the automotive market, share the highest manufacturers is mass car , followed by the General and Fiat. Transnational automobile giants Brazil market very good investment in the heights. "Who do not want to miss this

Good opportunities. "Trend of the consulting firm Economist Alexander ・ Andrade said.

With the development of the automobile business, Ford is not the only one. Recently, the popular announced plans to invest in 2014 years ago billion reals, used to improve productivity and product development. This year, Fiat will invest in Brazil and Argentina 18 billion reals, Peugeot-Citroen plan investment 9 billion reals. Renault has pledged in 2010-2012 investment of one billion reals.

Newcomers will join the ranks of Chery (Chery) program to Brazil for a factory invested 5 million to 7 million.

New energy vehicles still encourage

The potential of Brazil are sufficient for the vehicle manufacturers invest a lot of resources, specifically for the Brazil national design such as a car. Flexible fuel (flex-fuel) engine can be used alone, ethanol or gasoline can also be a mix of the two fuels. Equipped with this engine vehicles sold in Brazil currently covers all new light vehicles in almost 90%.

Rio Street station, are marked with a sign of "FLEX", which is Brazil's unique blends. Brazil ethanol research and development for more than 30 years of history, the current growing sugar cane area of more than 700 million hectares, is the world's second-largest ethanol producer countries and the world's largest exporter of ethanol production is second only to the United States.

Half used for sugar cane, half used for ethanol production, Brazil earlier years introduced biological energy law, mandatory for all gasoline fuel in Brazil to add 25% ethanol. In order to promote consumer use ethanol fuel, Brazil Government through administrative means adjusting standard petrol and the price differential between the standard ethanol contains 25% ethanol standard gas prices as high as $ 2.4 REAL (local currency), and the standard ethanol price of only $ 1.3 REAL.

Manufacturers in Brazil all new cars are dual-fuel car, you can follow any ratio to gasoline or ethanol, ethanol as fuel currently in use in Brazil already popular, Brazil all small car with fuel, 50% are ethanol.

Brazil's President Lula told reporters, metallurgical trade unions and Trade Union proposal update Brazil Automobile car, national car's average age is very old, in order to increase employment and reduce gas emissions, will need to update the car, on this basis, has launched the dual-use cars, 100% of new cars is a bi-fuel car, pre-emption of dual-use vehicles to make ethanol becomes an important part of Brazil's energy.

The low purchasing power will be released in

Rio heat content is divided into South and North Loup, north main to slums, Rio's most middle-class and affluent population live in the South.

Southern Ipanema beach scenery is beautiful, but often the robber robbery tourists, daytime visitors cannot separate action, night on the beach was deserted. Rio's gang forces is so strong that many slums, even the police are not afraid to go in, although with the presidential preference in policy implementation, the situation has improved, but Rio's rich people still keep a low profile, go to work on the road, almost do not see a luxury car, mostly economical car, locals told reporters that Rio's rich people are very low-key, can't display rich, luxurious car while also, but only a weekend trip.

Brazil is one of the BRICs, International Monetary Fund (IMF) recently issued a report saying that to 2014 annuity brick four countries in the world's total economic output, proportional up to 61%. But the gap Brazil is very large, one-third of GDP from Brazil in S?o Paulo, the proportion of poor population accounted for 60%, absolute poverty population accounted for 20%, while the proportion of the middle class is not high, only about 30%.

The 2008 economic crisis is over, the per capita GDP of Brazil from the crisis of us $ 30 when recovered to more than $ 1000. Super car network CEO Chenwenkai analysis: "Brazil automobile market growth lies in the credit system of relaxation. "As far as he describes, two years ago, in Brazil the loan interest car, approximately 37% of the principal, the repayment period is 36 months. Today, car purchase loan interest has been reduced to 25 percent of the principal, the repayment period is also extended to 80 months. This means that approximately 16% of Brazil consumers to buy a new car, this proportion is only 10%. ”

Lula said that he recently discussing update updates the cars and trucks, tractors, updated discussion of the key is how to deal with old cars, and how to promote more consumer purchase.

For consumers buying new trucks, Lula said will lower loan interest from 13.5% to 4% of the loan instalments to 96 months payment and legal changes require bought trucks can be secured in the truck. While the Government following the 2003 provides 3000 billion real loan

And will provide 10000 billion reals, all of the bus you need five years, all the urban transport are replaced with new ones. At the same time, the Government of Brazil introduced the tractor for the purchase of a new 10-year loan, your loan has a two-year period of non-recovery and 2% interest for consumer policy in the policy, has sold 2600 tractors.

High revenue opportunities behind

The automotive industry is Brazil's leading industry, largely in the hands of transnational corporations. 1950, Brazil live on low wages and preferential conditions to attract multinational joint venture to invest and build factories. Mercedes-Benz, Chrysler, GM, Volkswagen, Fiat, Ford, Toyota and other multinational automotive companies have to invest in Brazil.

Brazil automobile industry policy guideline is to increase employment and tax revenues, the Government of a foreign-funded enterprise tax is 30%, the company profit paid to the Government after a certain amount of income tax. Thus, Brazil's car prices higher. For example, the local popular economic car Volkswagen Golf (GOL), priced at approximately 1.5 million. Brazil car price is relatively high, a new model of the corolla, mid-range configuration, price $ 4.8 million, amounting to more than 30 million Yuan, and the car's price is only half of it.

Brazil automotive aftermarket parts suppliers price is very high. High tax result in price too high, so there are some places Brazil automotive parts supplier's "black market".

Brazil is a South American tax heavier, there are various taxes 58 species, according to a popular statistical, Brazil automobile of the entire production process to collect 30%-40% of revenue. Some parts of the company even by imported parts production to Brazil. A parts enterprises have told reporters that their company's products in the Chinese production costs less than 40% of Brazil about, from China to Brazil, after the deduction of fees and tariffs are still low cost 25%. Brazil various taxes income equivalent to 30 percent of gross domestic product.

Brazil China automobiles and parts at bargain prices more longing, in Brazil, with a clear cost advantage of Chinese parts products are very popular.

Currently, Chery Automobile production in Uruguay has entered Brazil market; ChangAn Automobile has entered Brazil market, start selling, and Chery and jianghuai is also actively preparing for the plant in Brazil. However, for the actions of the Chinese company, local also has many people worried that high cost performance products entering Brazil market in China, will give Brazil's automotive industry caused too much pressure.