The automotive industry in Brazil is set to receive a substantial investment of 100 billion reais, which is equivalent to about $20.4 billion, by 2029. This investment will primarily focus on transitioning to hybrid and electric models, as announced by Brazil’s vice president, Geraldo Alckmin. The announcement came after a meeting with leaders of the National Association of Motor Vehicle Manufacturers (Anfavea).
The amount invested in Brazil is more than double the figures previously announced by the government and reflects the growing commitment of major automakers to invest in the country. Volkswagen, General Motors, BYD, Stellar, Great Wall Motors, Stellantis group, Chery, and Nissan are some of the companies that have already announced significant investments in the country.
According to Alckmin, these investments will enable the construction of at least four new factories in Brazil. He emphasized that the automotive sector has an advantage over other industries as it stimulates a diverse production chain that generates employment and adds value to the economy through various products such as steel, glass, tires and spare parts.