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Brazil’s automotive industry to invest $20.4 billion by 2029

ByEditor

Feb 13, 2024

The automotive industry in Brazil is set to make a significant investment of 100 billion reais (about $20.4 billion) by 2029, primarily focusing on the transition to hybrid and electric models. This announcement was made by Brazil’s vice president, Geraldo Alckmin, after meeting with leaders of the National Association of Motor Vehicle Manufacturers (Anfavea). These investments more than double the figures previously announced by the government and indicate a significant shift towards cleaner and more sustainable automobile technologies.

Companies such as Volkswagen, General Motors, BYD, Stellar, Great Wall Motors, Stellantis, Chery, and Nissan have all pledged investments in Brazil, with priorities placed on hybrid and electric vehicles. These investments are expected to lead to the construction of at least four new factories in the country, including the first two electric car factories in Brazil.

The automotive sector in Brazil is seen as a key driver for the overall economy, stimulating a diverse production chain that generates employment and adds value. The industry requires a wide range of products, including steel, glass, tires, and spare parts, which creates opportunities for various sectors of the economy.

The significant investments being made by major automotive companies indicate a strong commitment to the Brazilian market and are expected to drive innovation and sustainable growth in the sector.

By Editor

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