Brazil Autos Report Q1 2011: New research report available at Fast Market Research

Nov. 19, 2010 - PRLog -- BMI has slightly revised down its vehicle sales forecast for the end of 2010 and for remainder of the forecast period from 2011 to 2015. While the month-on-month (m-o-m) fall in sales in September has prompted us to limit our expectations of sales growth to just under 9% year-on-year (y-o-y) growth, to 3.42mn units, by the end of 2010, the fear that the current rate of credit growth is unsustainable gives us reason to lower our average sales growth forecast to 8.5% y-o-y between 2011 and 2015. Nevertheless, we expect the new vehicle market to reach close to 5.13mn sales by end of our forecast period, with growth in the commercial vehicle segment expected to outperform the passenger car segment.

Meanwhile, cumulative production for the first three quarters of this year, however, stands at 2.72mn units, up by more than 17% compared with the same period last year. BMI highlights that output so far this year has exceeded 2008 levels - which was itself a record year for production. The growth has prompted the country's autos trade association to significantly up its 2010 output growth forecast to 13% y-o-y (to 3.62mn units) bringing it closer to BMI's expectations of 3.52mn units produced by the end of the year. In the medium term, we believe that our forecast of an average 7% y-o-y growth in production remains firmly on the cards thanks to sustained domestic and export demand.

Despite the expected slowdown in Brazilian demand, BMI expects the market to continue being a significant outperformer in the region. It is therefore not surprising that existing carmakers are looking to strengthen their presence locally, while new entrants continue getting to be drawn to this demand. Saab Automobile has become the latest carmaker to seek growth in Brazil, in what BMI sees as a strategy aimed towards increasing its presence in Latin America. Meanwhile, Toyota Motor is looking to firm up plans to build a second assembly plant in Brazil through a US$600mn investment. Another new entrant, the Brazilian entrepreneur Eike Batista, is planning to invest US$1bn in an electric car facility that will produce nearly 100,000 vehicles per year in the next four years. BMI fears that the major challenge confronting these companies is that the market is already highly competitive with the presence of a large number of international carmakers.

However, things are not as difficult for parts suppliers in view of the production potential in the country and as carmakers increasingly seek for the local sourcing of parts. Canadian parts supplier Magna International is stepping up its presence in Brazil and opening two new plants in the Sao Paulo region. In June 2010, similar plans were revealed by US-based ArvinMeritor, which is looking to invest nearly US$10mn towards building a new axle manufacturing operation in Resende to support German truck maker MAN's production in the region.

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/94359_brazil_autos_report_q1_2...

Partial Table of Contents:

Executive Summary
SWOT Analysis
- Brazil Auto Industry SWOT
- Brazil Political SWOT
- Brazil Economic SWOT
- Brazil Business Environment SWOT
Global Overview
- Table: BMI Core Views On Global Auto Sector
Regional Overview
- Region Best Poised For Increased NGV Sales
Business Environment Ratings
- Table: Latin America Auto Business Environment Ratings
- Regional Leaders
- The Underperformers
- Reining Developed States
Industry Forecast Scenario
- Table: Brazil Auto Sales By Segment - Historical Data And Forecasts
- Production
- Table: Brazil Auto Production By Segment - Historical Data And Forecasts
- Trade
- Table: Brazil Auto Trade - Historical Data And Forecasts
- Motorcycle Segment
- Table: Brazil - Motorcycle Segment: Historical Data And Forecasts
- Economic Contribution
- Table: Brazil Auto Economic Contribution
Macroeconomic Forecast Scenario
- Table: Brazil - Economic Activity
Competitive Landscape
- Market Overview
- Table: Brazil - Passenger Car Sales, 2008-2009
- New Investments
- Table: Brazil - Passenger Car Production 2008- 2009
- Table: Brazil Autos Export By Destination
- Manufacturers - Passenger
- Investment
- Commercial Vehicles
- MAN
- Light Commercial Vehicles
- Table: Brazil - Light Commercial Vehicle Sales
- Table: Brazil - Light Commercial Vehicle Production Jan-Aug 2009
- Heavy Commercial Vehicles
- Table: Brazil - Heavy Truck Sales
- Table: Brazil - Truck Production
- Buses
- Table: Brazil - Bus Sales (Units), 2008-2009
- Table: Brazil - Bus Production (Units), 2008-2009
- Forecasts
- Table: Brazil - Truck And Bus Sales, 2007-2014
- Table: Brazil - Truck And Bus Production, 2007-2014
- Motorcycles
- Table: Brazil Motorcycle Production (Units), 2008-2009
- Table: Brazil Motorcycle Market (Units), 2008-2009
- Industry Developments
- Suppliers
- Table: Brazil Automotive Parts Segment: Leading Names
- Investments
- Segment Developments
- Company Monitor
- Chery Automobile - Latin America Regional Overview
Company Profiles
- General Motors Company (GM)
- Fiat
- Volkswagen (VW)
- Honda Motor

Full Table of Contents is available at:
-- http://www.fastmr.com/catalog/product.aspx?productid=9435...

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.