Market Research Report
Brazil Truck & Bus Market - 2019-2026
|Published by||DataM Intelligence||Product code||792790|
|Published||Content info||110-140 Pages
Delivery time: 1-2 business days
|Brazil Truck & Bus Market - 2019-2026|
|Published: February 1, 2019||Content info: 110-140 Pages||
The Brazil automotive industry struggled during the mid-2014 to 2016 crisis period that had ended in 2017, since then, the Brazil truck & bus market is growing at a moderate pace with recovery in the economy.
Currently, Brazil truck & bus market is one of the most lucrative markets due to its unique dynamics. In BRICs, Brazil is the main business sector which is ruled by the European Auto Manufacturers and it's not by any stretch of imagination, a price delicate business sector. Brazil being one of the world's biggest automobile assembling markets, has been seeing a solid development contrasted with the worldwide auto industry because of a strong local interest and regularly expanding exports market.
In Brazil, trucks are mostly utilized as the essential method of transportation for freight transport. This administration in the nation is largely provided by various autonomous proprietors, who are not yet capable to provide a unified large volume of services. On the back of the developing interest of merchandise in diverse districts of the nation, the production of trucks is increasing persistently.
Brazil truck & bus market has reached to USD xx billion in 2018 from USD 14.91 Billion in 2017, and is estimated to reach USD xx Billion in 2026, at a CAGR of y% during the forecasted period 2019-2026.
Increasing demand for automotive vehicles, i.e., buses and trucks are driving the demand for the growth in the Brazil truck and bus market. Attracting private investments, exempting investors from customs duties and other taxes on the purchase of certain capital goods and infrastructure are some of the key investment policies Brazilian government had taken to boost the economy of the country.
Brazil bus and truck industry is expected to rebound growth in coming years with increasing investments in the truck and bus industry. In 2018, Mercedes-Benz has unveiled its new investment plans in bus and truck plants in Brazil. Brazil has imposed 35% duties on imported commercial vehicles and spare parts, in order to promote local production in the country.
However, high cost of truck & bus that are imported especially from the Europe is pushing down the domestic truck & bus manufacturing industry.
Brazil truck & bus Market segmented on the basis of truck type, bus type and fuel type.
Based on the truck type, the Brazil truck & bus market can be broadly classified into heavy trucks, light trucks and medium trucks. Light truck is accounted for the major share due to recovery in the economy and increased production activities in the country. For instance, in September 2018, Vale announced plans to convert its truck fleet to fully autonomous from 2019 at its Brucutu mine in Minas Gerais.
Heavy trucks segment is accounted for predominant share in the truck market, as they are mainly used in interstate transportations through which large part of freight transport occurs between different places and it also provides high mileage to the vehicles owners that are running across states. Growth of Medium truck segment is slow compared to light and heavy truck segments, and it offers attractive growth opportunities especially driven by growing e-commerce and logistics market. Expansion of logistic services in the country also supported the growth for medium trucks in the recent years.
Based on Bus Axle type, it is segmented into single axle and multi axle. Multi axle is the dominating segment in the Brazil bus market as the growth in the bus industry is mainly due to its advantage of better comfort and smooth journey with less stress. Increasing tourism and addition of new routes in the country has further supported the growth in multi axle segment. Rising middle class population are increasingly opting for comfortable journey. Slow growth in the Single axle segment is due to the less demand in the Brazil market.
The Brazil bus and truck market is moderately consolidated with the presence of local and international players. Some of the major players in the Brazil truck & bus market are Volkswagen, Volvo, Daimler group, Ford, Iveco, Renault, Scania, Kia motors, Toyota Motor Corporation, DAF and Agrale. Volkswagen and Daimler are the leading suppliers of trucks and bus Market in Brazil.
Brazil bus and truck market is expanding with companies adopting the new product launch strategies to sustain market competitiveness. For instance, in August 2018, Brazil-based Ambev Brewery stated that it will use around 1,600 electric trucks made by Volkswagen Caminhoes e Onibus (VWCO) to transport beverages by 2023.