Brazil Auto Parts Sector Forecasting US$ 10 Billion in Exports This Year

Brazilian participation in Automechanika Middle East, the auto sector fair that took place in Dubai, last month, was considered successful by the companies and exhibitors. The Brazilian Export and Investment Promotion Agency (Apex-Brasil) and the Brazilian Association of Auto Parts Manufacturers (Sindipeças) took nine companies to the exhibition.

"This is the best sector fair in the region. It has grown when compared to 2007 and companies returned showing great satisfaction, all having closed deals," said the Sindipeças councilor in the area of fairs and events, Theophil Jaggi.

According to him, one of the advantages of the exhibition is that it attracts businessmen from several countries in the Middle East, Africa and Asia, and Brazil sells vehicles to several different markets in these regions.

"Our sector, of spare parts, operates where there are Brazilian vehicles, be they passenger cars or heavy vehicles," he said.

Jaggi added that the Middle East, especially, has purchased vehicles from Brazil. According to him, 71% of those who visited the stand were from the region, being 32% from the United Arab Emirates, 18% from Iran, 6% from Egypt and 5% from Saudi Arabia. Many distributors have warehouses in Jebel Ali Free Zone, in Dubai.

The pavilion also attracted visitors from Asia (10%), Europe (9%), Africa (6%) and the Americas (2%). In total, according to Jaggi, 325 visitors to the stand were registered. He added that all companies that participated showed interest in participating in the exhibition once again next year.

The companies that participated in the fair in Dubai are DHB Componentes Automotivos, Freios Farj, Frum Tecnologia e Freios, Keko, NWO-Drucklager, RCN-RFI, Suporte Rei, S.Y.L. Pastilhas de Freio and Vibrasil-Top Leather.

The fair brought together 950 exhibitors, against 811 last year. A total of 18,500 people from 127 countries visited the fair, against 12,500 from 100 different nationalities in 2007. The fair covered an area of 23,000 square meters at the Dubai World Trade center.

The Brazilian auto parts sector exported the equivalent to US$ 9.1 billion last year, an increase of 17.1% in comparison with 2006. For this year, the Sindipeças expects foreign sales to reach US$ 10 billion.

The activity posted revenues of almost US$ 36 billion in 2007, growth of 13% in comparison with the previous year. The forecast for 2008 is for revenues of US$ 45.1 billion.

Anba