Monday, June 9, 2014
Automotive sector is the second biggest investor at Brazil's market
The automotive sector is the top second industrial segment to invest in Brazil between 2014 and 2017, ccording to a study conducted by BNDES, the country’s economic and social development bank, which
was divulged last week.
The study concluded that the automotive industry should invest R$74 billion (US$ 33.6 billion) during the
period. The value, within the industrial segment, is 2nd only to the oil and gas segment, which has plans to invest R$488 billion (US$ 222 billion) between 2014 and 2017.
The automotive industry’s investment value is very close to what was calculated by Anfavea, R$ 75.8 billion
for the period ranging between 2012 and 2018.
In terms of ratios, the automotive sector once again ranked 2nd in investment increase when compared
to the period ranging between 2009 and 2012. According to the BNDES, the segment increased its investments from R$ 46 billion to R$ 74 billion, representing an increase of 63%, behind only the aerospace segment, which registered an increase of 294% – from R$ 4 billion to R$ 14 billion. Investments by the oil and gas segment should increase 53%.
Other industrial segments, according to the state development bank, are accumulating future investment
values that are well below those from the automotive sector. In values, the mining segment appears in the 3rd
position of the ranking, with planned investments of R$ 54 billion, followed by the pulp and paper and chemical sectors, tied at R$ 26 billion, each, the electro-electronic sector, with R$ 24 billion, and the steel sector, with R$16 billion. The remaining industrial segments should invest R$ 418 billion, leading the total future investments in the industrial segment to R$ 1.1 trillion (US$ 500 billion) during the period.
Between 2014 and 2017, the agricultural and services segmentplans to invest almost R$ 1.5 trillion,
placing it as the number one sector of the economy in terms of future investments. Infrastructure should
receive investments valued at R$ 575billion during the same period.
According to BNDES calculations, investments in the country by 2017 should exceed R$ 4 trillion (US$ 1.8
trillion) – the most recent study, which was conducted in October 2013, called for future investments valued at R$ 3.9 trillion.
The study includes company projects and strategic plans, and is not restricted to those funded only by the
BNDES. The scenario calls for a real growth in investments of 28%, an annual 5.1% rate, when compared to the 2009-2012 period.
From the total R$ 4.07 trillion, industry accounts for planned investments of R$ 1.15 trillion, an increase of 31%, that is, 5.5% per year. In infrastructure the investments should increase 35%, driven mainly by ports and railways. The investment outlook for the Brazilian electric sector is R$ 191.7 billion and in the rail sector,
the Outlook calls for R$ 57 billion between 2014 and 2017, while the investments in urban mobility, valued
at R$ 53 billion, represent average annual growth rate of 30%. 58% should be destined to subway projects,
16% to monorails, 13% to Bus Rapid Transit, 7% for trains and 6% for light vehicles on rails.
Posted by Joao Moraes at 2:21 PM