42 A lot of challenges and opportunities for the global automotive sector have become apparent recently. This could transform the sector in ways not seen for 50 years. Propulsion alternatives (electric, hybrid, and fuel cell), bold design associated with the properties of assistive technology, connectivity, and energy efficiency – in conjunction with global calls for sustainability and decarbonization, and the prospects for self-driving and flying vehicles require attention, organization, and preparation by leaders for this unique moment that the sector is going through. These changes have influenced the location of production units, brand engagement, competition – with joint efforts between competing organizations to support heavy investment – the diversification and diffusion of new concepts, and the way products are marketed and sold. In other words, business strategy is being affected completely. From automakers to manufacturers of components and parts, from distributors to retail networks, through repair and road implement sectors, everyone has noticed the opportunities knocking at the door. In this context, the Covid-19 pandemic has accelerated these trends and changed the behavior of a new generation who, while not ignoring modern vehicles, has reduced its interest in vehicle ownership and driving. The sharing of and search for sustainable transport alternatives in urban centers have opened up business alternatives, such as vehicle subscriptions. In Brazil, there are interesting opportunities. The Route 2030 program could ensure investments in Research, Development and Innovation (R,D& I) and the digitalization of companies in the sector. In its first phase, the Renew Program signals the replacement of trucks, buses, and road implements over 30 years old. In addition, the diversity and quality of our energy matrix make solutions such as ethanol and green hydrogen possible, which would offer us a prominent place on the world stage. It is up to the government to ensure adequate economic conditions, reducing the infamous “Brazil Cost,” and reducing economic instability and legal uncertainty. The future of the automotive chain in Brazil can be based on prosperity and leadership, although in almost a decade production and sales have fallen far short of its 4.5-million-unit production capacity. Between 2015 and 2022, an average of 2.5 million units were produced and about 2.1 million were sold. For 2023, the projections are for similar performance. While Anfavea projects production growth of 2.2% (2.42 million), Sindipeças sees stagnation (2.37 million) year on year. The next few decades could be different. With the right policies and incentives, the right strategies and harnessing the potential we have, we will be able to welcome the future knocking at the door. The future knocks at the door for the automotive sector The future of the automotive chain in Brazil can be based on prosperity and leadership ARTIGO | ARTICLE | ARTÍCULO By George Rugitsky, Chief Economist at ANFIR and Director of Economics and Markets at Sindipeças/Abipeças
RkJQdWJsaXNoZXIy NDU0Njk=