For some decades, Volkswagen has been Brazil’s biggest auto exporter. Between 1987 and 1992, it sold sedan and station wagon versions of the Gol (badged Fox) to the US and Canada. Locally assembled Golfs were also shipped to the US for a time.
VW do Brasil also exported the first generation Passat to Iraq from 1983-1988 [still very much in evidence, mostly as taxis, in TV news reports from the country – ed].
Go deeper with GlobalData
More recently, the Polo-based Fox was shipped to Europe, and the UK, from 2005 but that ends this quarter, partly because currency exchange rates are no longer favourable and partly because Europe will eventually get the Up! as an entry level car.
VW Brazil consequently has enjoyed a trade surplus. Last year, it exported $1.758bn of both completely built up and knocked down (assembly kit) vehicles, plus parts, followed by Mercedes-Benz ($1.547bn) and GM ($1.468bn).
VW imports into Brazil topped $1.697bn, not too much less than its exports, but enough to make it also the biggest vehicle importer in value terms.
Group CAOA, however, caused some surprise by buying $1.652bn’s worth of vehicles overseas last year, becoming the second largest importer with its shipments of CBU Hyundai models from South Korea plus a small number of Subarus from Japan.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataCAOA managed to overtake Toyota, which imported vehicles worth $1.627bn. But these came mostly from neighbouring Argentina with about 40% Brazilian parts content.
