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ITALIAN CAR INDUSTRY HEADLIGHTS ON BRAZIL
The Italian car industry is on its way to Brazil for the Automec fair, taking place from April 12th to 16th in Anhembi, Sao Paulo. This fair, now in its tenth edition, is one of the most important in South America. In 2009, it registered excellent â€śnumbersâ€ť: 968 exhibitors from 23 different countries occupying an area of â€‹â€‹50,000 square metres, and 62,314 visitors.
For the 2011 event, the Italian Institute for Foreign Trade (ICE), in cooperation with the two Italian trade associations Anfia and Aicha, will coordinate a group of 17 Italian companies spread over an exhibition area of â€‹â€‹240 square metres. But what will be on show at the Italian stands? Because the fair is devoted to motor vehicle components, visitors will be spoiled for choice, starting with paints in a vast range of colours or for special bodywork. For scooter enthusiasts, there will be components for starters, distributors and alternators and for the car sector there will be sensors and EGR valves for engines, in addition to air flow meters, pinions and pulleys for alternators. Finally, compact and modular electronic alarm systems (also available for campers), window opener, anti-drag and anti-lift modules, sirens and innovative security systems for parking, with obstacle warning sensors that that are activated when reverse gear is engaged. For visitors and experts, the fair will provide an opportunity to exchange knowledge and information, and to compare the industries of various countries; for this, the Italian companies will not come unprepared and will be able to offer the best of the products coming out of research and development.
While innovation will be the focus of Automec 2011, there will also be something "traditional": the quality of materials used in car components, for which Italian companies are already known worldwide, and which has earned them important leadership positions in the Brazilian market in the past. In terms of car component imports, Brazilâ€™s main supplier countries are currently China (15.2%), United States (12.8%), Germany (11.0%) and Japan (10.9 %), while Italy occupies eighth place.
Since 2000, these imports have benefited from a 40% tax reduction, making the cost of imported products more competitive than those produced domestically; with the Real/Euro exchange rate currently standing at its lowest in the last 25 months, they are now even more competitive. In the three first quarters of 2010, compared with the same period of 2009, imports increased by 60.4%, rising from US$ 9.5 billion to 15.2 billion dollars. An increase in car imports, up 148.9% in just the first eight first months of the year, has contributed to boosting the market for spare parts, components and accessories.