Brazil's share of less than 1.7% China's extensive export of automotive exports change

“There has been no fundamental change in the mode of extensive export growth in China.” On September 27, Lu Luxun, deputy director of the Department of Mechanical and Electrical Industry of the Ministry of Commerce, ran a 2011 key automobile export held by the China Automotive Technology and Research Center (hereinafter referred to as “China Railway”). The market policy and regulations preached at the meeting.

From January to July this year, although China’s automobile exports were in a good momentum, the export of automobiles and parts was US$22.86 billion, which was a year-on-year increase of 33.3%, of which the total vehicle exports were 465,000, an increase of 53.3% year-on-year. However, the Ministry of Commerce believes that China’s automobile exports are still facing challenge.

First, the external demand caused by the slowdown in the international market caused by the financial crisis, the rise of trade protectionism, and the appreciation of the renminbi are still showing up. Second, problems such as increasingly tight constraints on resources and the environment and weak corporate core competitiveness are seriously hampered. China's auto exports have been developing healthily.

According to sales statistics, according to sales statistics, in the first eight months of this year, the top five markets for Chinese auto exports were Brazil, Algeria, Russia, Chile, and Iran, with sales of 81,801, 55028, and 46,592, respectively. 36454 Taiwan, 26419 Taiwan.

Taking Brazil, the largest export market for Chinese cars, as an example. In the first eight months of this year, three Chinese auto companies, Jianghuai, Chery and Hafei, entered the top 20 of local sales, with a score of 14, 15, and 16. Sales exceeded 10,000, respectively, but the overall market share was only about 1.7%.

“Jianghuai entered the Brazilian market for 18 months of research and testing, which is very important.” Zhang Peng, vice premier of Jianghuai Automobile International Corporation, said that Brazil’s new generation of young people is the main buying group for electronic systems and entertainment. The system requirements are relatively high. If China cultivates and enhances these industry advantages, it can also provide more and better cost-effective products.

At present, Fiat, Volkswagen, General Motors, and Ford are the "four big families" in the automotive market in Brazil, which account for about 74% of the market. However, this trend is constantly changing. The share of the four major families has declined in the first half of 2011. To 71%, the growth rate of Japanese and Korean companies headed by Kia, Hyundai, and Nissan is relatively clear.

It is worth noting that before that, Brazil’s compact car market share was relatively large, and the mainstream cars were under 20,000 US dollars. However, at present, Brazilian consumers’ demand for displacement has increased, and demand for products above 1.0 has increased. China Motors is an opportunity to enter.

In addition, Brazil has rich bio-sugar resources and introduced an energy alternative strategy. Now, Brazil requires that 50% of all gasoline be blended with ethanol and at the same time step up research and development of bio-diesel.

For Chinese auto companies, the development prospects for ethanol fuel in Brazil are promising. Brazil is far higher than other countries in the development and application of ethanol fuel. The establishment of new ethanol fuel plants, including the development of some technologies, is also an opportunity.

As one of the “BRIC countries”, the automotive market in Brazil has great potential. In 2010, it sold 3.51 million vehicles, an increase of 11.9% year-on-year, surpassing Germany and becoming the world’s fourth-largest automotive consumer market. It is expected that the increase in 2011 will still maintain a relatively good trend, with an increase of approximately 5.2%. From 1996 to 2010, Brazil’s investment in the automotive industry totaled 30 billion U.S. dollars, and its automobile production capacity rose to 3.64 million U.S. dollars. It is expected that this figure will continue to grow in the coming years.

"Accelerating plant construction and promoting localized production may be a top priority for the current development of Chinese auto companies. On the contrary, if we simply conduct price competition in Brazil, it will surely be launched by this market." Zhang Peng finally said.

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