Brazil’s auto parts industry on course for expansion - Increasing exports in 2006 and a new record in vehicle sales on the domestic market Brazilian auto parts manufacturers achieved a total sales figure of US$ 24.2 billion in 2005 (2004: US$ 18.5 billion). The industry is now counting not only on rising demand from the domestic market but also on an increase in exports. The export segment covers not only auto parts as such but also entire vehicles incorporating a high percentage of locally manufactured components. Brazilian auto parts manufacturers can supply virtually any component required in vehicle manufacturing.

The sales figure for Brazilian exports of auto parts rose to US$ 7.5 billion in 2005, against a backdrop of imports totaling US$ 6.7 billion. The industry thus achieved a trade balance surplus for a third year in succession. The main destinations for Brazilian auto parts were the United States (31%), followed by Argentina (approx.15%), Mexico (approx. 9%), Germany (8.4%) and the United Kingdom (4.9%). Germanys imports of auto parts from Brazil in 2005, valued at over US$ 625 million, was 85% higher than in 2000. Germany, Europes biggest economy, is also the main supplier of imported auto parts to Brazil. Germany held top position in the league table for exporting auto parts to Brazil in 2005 (approx. 20%), followed by the US (14.7%), Japan (13.9%), Argentina (10.7%) and France (9%).

The Brazilian auto parts industry is optimistic about the current business year: in the period from January to July, revenue from export sales had already reached US$ 5 billion, an increase of 20% over the same period in 2005. Moreover, August 2006 hit a new record of 178,000 vehicles for monthly sales on the domestic market.

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