According to foreign reports, Brazil’s domestic auto market is in short supply, and auto import pressure has increased. The direct reason is that Brazilian auto parts supply is seriously insufficient.

Leticia Costa, director of Brazilian automotive consultancy Prada Assessoria, stated: “A lot of people are only concerned about the impact of raw material prices on auto parts supply, but they have overlooked the fact that Brazilian auto parts supply chain as a whole lacks competitiveness.”

Paulo Bedran, Brazil’s Ministry of Industry and Commerce Development official, said: “The Brazilian government is actively working to provide low-interest loans for auto parts manufacturers. If we do not pay attention to the development of the parts supply chain, we will be another Belgian that will only assemble cars. ”

Ivan Ramalho, another Brazilian government official, said: “The total market value of auto parts in Brazil will reach 45 billion rials (about 25.6 billion U.S. dollars) in 2010, and half of its market value will be imported from abroad. On the positive side, this It shows that Brazil's auto parts industry still has a lot of investment space."

Osias Galantine, Director of Purchasing at Fiat Brazil, said: “Brazilian parts suppliers need to modernize their production and increase the quantity and quality of their products to meet the needs of the automotive market in Brazil.”

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