A KPMG International survey of the auto industry showed that 40% of executives interviewed intend to invest in the Brazil within the next few years.
This compared with 64% for China, 59% for India and 44% for Russia 44% in this year’s survey, the 15th.
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The consultancy talked to 200 high ranking executives in 28 countries in the Americas, Europe, Africa, Middle East and Asia.
Results were presented by Charles Krieck, associate manager for KPMG, during a workshop dedicated to the recent wave of newcomers to the Brazilian market hosted by media company Autodata.
Autodata itself, without citing sources, said this week that, besides the Land Rover Discovery Sport [Freelander replacement], Tata Motors’ JLR will build the upcoming ‘small’ Jaguar XE at its factory under construction in Itatiaia, in the Brazilian state of Rio de Janeiro.
JLR has not officially revealed the products it will manufacture here.
According to the KPMG study, 44% of survey respondents cited Brazil as the main destination of investments in the Americas. Mexico, which has a free trade agreement with Brazil, scored 45% of preferences. The result shows an improved scenario for Brazil which rated 23% in the 2013 survey.
“Brazil will hold position among main auto industry foreign investment destinations despite some uncertainty which has arisen in the last few months. Prospects for the medium term are positive,” added Krieck.
Although the consultancy does not link the rise in expectations to any specific factor, the most obvious interpretation is that the Inovar-Auto investment programme has strongly influencing this positive upkick in investment intentions.
Krieck said there was still room for new automakers to invest in Brazil “yet the competition will be ever tougher and entrants will face the challenge of consolidating their image in a market dominated by great brands”.
According to trade group Anfavea, the traditional automakers – Fiat, Ford, GM and VW – ended May with 64.4% market share, below 65% for the first time. Before 1990 they held 90%.
