Brazilian Automobile Industry: A Comprehensive Analysis

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BRAZILIAN
COMPANIES IN
INTERNATIONAL
BUSINESS

INTRODUCTION
* Brazil has been ranked has 6th largest market
of vehicles in world, with sale of about 2million
in the recent years, which is responsible for
the growth of the economy if the country.
Thus, in order to effectively analyze the set of
factors such as risk in terms of cultural, social,
political and social conditions od the country,
the detailed analysis has been made towards
the Brazilian companies belonging to the
automobile industry (Benites-Lazaro et al.,
2017).

ACTION PLAN FOR BRAZILIAN
COMPANIES IN AUTOMOBILE
INDUSTRY
* OBJECTIVE: Brazil has been used as the experimental zone by
the major automobile makers, dealing with the development
of small manufacturing techniques to be used in the
manufacturing of vehicles. The efficiency of plans towards the
manufacturing of vehicles leads to the boosting of the various
techniques being applicable towards the development and
growth (Marodin et al., 2019).
*ANALYSIS: In Brazil as per the status of the popular cars, 1.0
liter engine is required in terms of promoting the preferential
tax structure leading to affordability of the automobile
vehicles by the maximum number of people living in Brazil.
*CALCULATION: The gross domestic product per capita in Brazil
have exceeded 10,000 dollars in year 2010, but in year 2016
it decreased and went up to 8,700 (Marson, M.D., 2018).

*AIM: The aim of the Brazilian automobile companies is to
develop the set of products in such a way that it serves
effective towards the economic and the social factors
resulting in contribution of leading towards the
sustainable development in terms of the automobile
industry.
The domestic and foreign enterprises have been provided
the equal opportunity, defining the low labor cost. For
import, the system has been positioned decreasing
leading towards decrease in tariffs depending on the
successful importing years. Where the corporate tax is
defined at 15% with no incentives in terms of leaving
profit within the country, taxes in brazil are high as
compared to Ireland and Greece (Sellitto et al., 2018).

SWOT ANALYSIS
OF NEW MARKET
AND ETHICAL
ISSUES*Strengths defined towards the automobile
industry of Brazilian companies are:
1. Majority of opportunities are provided by
European institutional networks
2. In MOVE ESCP, the cross sectional competences
are easily available
3. Advanced level of research of European
automobile and transport sectors towards the
technological development of the engines along
with solutions provides sustainable mobility
(Sheng and Carrera Junior, 2016)

*The opportunities are defined as:
1. Exemption of IPI in automobile industries has
been established
2. High growth rates in transport and logistic sector
defined new demands for mobility towards the
mid-term period
3. The existing automobile projects EU-Brazil leads
towards urban mobility
4. Increase in demands and the commitments
towards the national companies in green logistics
5. Sustainable transport facilities towards urban
centers (Sturgeon et al., 2017).

*The weakness are defined as:
1. The members of consortium defines no
former corporation initiatives with Brazil
2. The set of the issues related with 20% of
people of Brazil living below poverty
line, affects the economic stability of the
country (Vale et al., 2019).
*The threats are defined as:
1. Defining high cost in terms of logistics
2. Dependency of transportation over
roads and highways
3. Gasoline and Biofuels are termed as
important transportation fuels (Silveira
and Johnson, 2016).

*ETHICAL ISSUES: The ethical issues which serves
effective are:
1. Due to the high level of dependence over the
consumption and export towards the international
market, economic recession is affected.
2. Protactinium which provides protection to the local
manufacturing serves cause of consult(Gouvea,
2015).
3. The high costs in terms of logistics defined at least
data, defines the double average of the developed
countries.
4. The issue related to the connected cars defining
industry evolution of transformation
5. Issues towards the balance of government policies
and the technological development (Ceryno et al.,
2015).