92 Anuário Yearbook ABLA 2014 Last year was one of records and achievements for the automotive industry. It was a period of consolidation for the Inovar-Auto program, which boosts domestic production, increasing energy efficiency in products and the competitiveness of the country with investments in research and development. InvestmentofR$75.8billionby2017 in theconstructionof newplants, theexpansionof existingones, andnewproducts has been announced. And more than R$ 10 billion has been earmarked for innovation and engineering. Thiswill translate into complete centers of engineering and technology that will make Brazil a hub for the development of more efficient products for the domestic and exportmarkets. But it is no use having a strong manufacturing industry without having a supplier base to match. Hence the need Records in 2013 to develop a specific program for the auto parts sector to further boost the segment. The idea is tohavemeasures that developpart traceabilityandhelpproduce items inBrazil that are currently imported. These, it must be remembered, are highly advanced products and are essential to the pursuit of greater energy efficiency. And to increase our competitiveness against other markets, we have presented the federal government with a program that will stimulate the export of vehicles and agricultural and highway machinery. With the investments included in the Inovar-Auto program, the production capacity of the domestic industry should increase to around 6million units. We identified the need to develop measures that will enableBrazil to competeagain in the international arenaand to export amillion products a year from 2017. The positive climate for the industry stems not only from investments and projects, but also the results. A record 3.71 million vehicles were made in 2013, up by almost 10% on 2012’s 3.40million units. Thedata relating to themanufactureofnewproductswas drivenmainly by exports, agribusiness and the substitutionof imported for domestic vehicles. But we still have a longway togo. Brazil is currently the fourth largestmarket in theworld, but only the seventh largest producer. We closed last year with sales of 3.76 million units, the second best year on record after 2012. The reduction in imports had a strong influence: their share fell from 27% in December 2011 to 19% in the same month of 2013, a direct result of Inovar-Auto. The agricultural and highway machinery sector also did well. For the first time, the segment produced more than 100,000 units and had a record sales year on the domestic market, with 83,100 machines sold. The result was driven especially by the record harvest in 2013, attractive finance ratesand theongoingpursuit of increasedproductivityon the part of the producers. For 2014 we expect the market to remain positive in every segment. And we will this year discuss new plans with the federal government to establish a new industrial policy, Inovar-Auto 2, for 2018 to 2025 or 2030, offering a long-term vision for the industry, which is a key factor for companies’ planning.
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