Brazil’s automotive industry is set to make a substantial investment of 100 billion reais, equivalent to about $20.4 billion, in the country by 2029. This investment will focus on transitioning to hybrid and electric models, as announced by Brazil’s vice president, Geraldo Alckmin. The announcement came after a meeting with leaders of the National Association of Motor Vehicle Manufacturers (Anfavea).
This amount is more than double the figures previously announced by the government and reflects the growing commitment of major automakers to invest in Brazil. Volkswagen, General Motors, BYD, Stellar, Great Wall Motors, Stellantis group, Chery, and Nissan are some of the companies that have already announced significant investments in the country.
According to the vice president, these investments will enable the construction of at least four new factories in Brazil. He emphasized that the automotive sector has the advantage of stimulating a diverse production chain, generating employment and adding value to the economy through the production of various products such as steel, glass, tires, and spare parts.
The automotive industry’s investment in Brazil is expected to create new job opportunities and contribute significantly to economic growth. The government has been working closely with Anfavea to attract foreign investment and promote domestic production capabilities. With this investment announcement, it seems that their efforts are paying off as major automakers continue to recognize Brazil as an attractive market for their products and services.