Blog post on 29/01/2015
An important German automotive manufacturer chose SCS Concept products for its Brazilian plant: more than 30 Freedom3 wrenches and SQnet + software for Quality Control.
On the occasion of this important result reached thanks to our Brazilian partner M. Shimizu, we propose here a forecast on the Automotive Industry in Brazil.
The markets show signs of potential growth, although it will likely be at a slow pace. In Brazil, the economy had the worst performance since 2008/2009 falling into a technical recession in the first half of 2014. Although the economy has declined, economists expect that three percent (3%) growth will resume by 2017. Given the current unstable conditions of the Brazilian economy, fears of inflation and growing household debt have become significant issues, and as a result this will likely lead to a decline in consumption in the short-term. However, there is a young and growing population in the country and as income levels rise, the potential for the growth of the economy (and the auto industry) rises as well. About the vehicles, subcompact vehicles have continued to dominate the market, that will likely shift to SUVs dominating the market by 2018. Along these lines, consumers in Brazil are also shifting to SUV/CUV type models with 15 proposed new entries into the market expected by 2021.