Anfavea: Automotive sector will invest R$125 billion in Brazil – 04/12/2024 – Market

The automotive sector will invest R$125 billion in Brazil by 2032. The announcement was made by Anfavea (National Association of Motor Vehicle Manufacturers) this Friday (12).

The amount was revealed at an event to inaugurate the entity’s new headquarters on Avenida Engenheiro Luís Carlos Berrini, in São Paulo. The event was attended by President Luiz Inácio Lula da Silva (PT) and ministers.

“You were decisive for this result”, said the president of Anfavea, Márcio de Lima Leite, to the politicians present. The amount includes contributions made since 2021, during the Jair Bolsonaro (PL) government.

Ministers Fernando Haddad (Finance), Alexandre Padilha (Institutional Relations), Geraldo Alckmin (Development, Commerce and Industry and vice-president) and Ricardo Lewandowski (Justice) participated in the ceremony.

The sum of this last investment cycle in the automobile industry accounts for the production of light and heavy vehicles, as well as agricultural machinery and road implements.

During the event, Haddad asked the “automakers’ banks” to adapt quickly to make the spread (difference between the interest on what the bank takes in credit and the amount it charges to offer credit) fall and, thus, sales of the vehicles rise in Brazil.

The speech was corroborated by Lula, who during his speech highlighted the importance of workers earning “a little more so they can buy a car” and demanded a drop in interest rates “so the worker can pay less”.

During the speeches, no political agent demanded a reduction in car prices, which are on an upward trend given all the investments that the industry has made to modernize and adapt to the new parameters of the energy transition.

After the event, in conversation with journalists, the president of Anfavea highlighted that credit has become very expensive in Brazil. In 2023, only 30% of new cars were sold through financing.

Regarding vehicle prices, the executive stated that production costs have increased over the years. “But if we apply inflation to the price of popular cars in the past, the value would reach R$80 thousand,” he said.

Lula also called for the return of the São Paulo Motor Show — the last edition took place in 2018.

Anfavea is studying a format similar to fairs such as Agrishow, in which the sale of products on display is allowed.