Brazilian car companies are benefiting from a competitive exchange rate and expanding their market by exporting to Central America, Middle East and Europe. The diversification of exports is part of a strategy developed by the automotive sector to sustain its economic activity even with the slowdown of the Brazilian economy.
Mexico and Argentina remain the main destinations of cars produced in Brazil, accounting for 86% of Brazilian car exports in 2016. However, the plunge in the Latin-American demand, especially in Brazil, led automotive companies to search for new markers, with a bigger growth potential, such as Egypt, Saudi Arabia, Belgium and Poland.
Although the new strategy reflects the deterioration of the automotive market in Brazil, it can also represent an opportunity for Brazilian companies to go global, by accessing new markets and becoming more competitive in the way.