Brazil is expected to eclipse Germany as the world's fourth largest automobile market this year, according to the Financial Times on Tuesday. Some 3.1 million cars were sold in Brazil in last year, ranking it No.5 worldwide after China, the U.S., Japan and Germany.
Volkswagen, the No.2 automaker in Brazil after Fiat, predicts that the market will grow 7 percent this year, which would put the South American country ahead of Germany in total auto sales. General Motors projects that sales will jump 5 percent from last year to 3.3 million.
But consulting giant PricewaterhouseCoopers predicts that Brazil will overtake Germany only if light commercial vehicles are counted. It expects Brazil's light-vehicle market to grow 8 percent to 3.3 million this year, while Germany's will decline 20 percent to 3.18 million.
The Brazilian economy is expanding rapidly as more advanced countries increase investments and build production facilities there. The country's middle class has also been growing and they are eager to buy cars.
With such an upbeat outlook, global automakers are expecting to reap strong profits from Brazil, so the competition is heating up. Asian carmakers are making their way into the country, with Korea's Hyundai Motor and China’s Chery Automobile planning to build plants there.
