Brazilian auto parts industry liaises with Latin American buyers

The 14th edition of BAP’s Business Round took place in October 2024, in São Paulo, and generated nearly three million dollars in immediate business.

To boost the sales of Brazilian auto parts, this year’s edition of the Business Round lasted three days. During this time, 69 member companies of Sindipeças held 695 business meetings with 19 importing companies from nine Latin American countries - Argentina, Bolivia, Chile, Colombia, Ecuador, Mexico, Peru, Uruguay, and Venezuela - that could assess the quality and diversity of local products. In addition, the importers paid 48 visits to 18 factories and learned more about the capacity of our Trusted Partners. At the end of the Business Round, a total of 749 new business contacts were made. The initiative generated about USD 2.9 million in business deals, and a potential for another USD 16.6 million in the next twelve months, according to a survey conducted with the Brazilian participants.

For the international buyers attending the event, the business rounds proved to be an excellent opportunity to establish direct connections with potential suppliers. Sergio Ornelas, Manager of Procurement, Planning, and Business Development at the Mexican company Super Refacionnes Camsa, highlighted the relevance of the Business Round for his company. “Right now, Brazil accounts for 5% of all our imports. We are planning to increase this share to 15% over the next four months, and we hope to start new imports within a month from now. This was our first time in the business rounds organized by BAP, and I can say that they are an excellent way to improve communication, close deals, and get answers to our questions directly at the source,” says Ornelas. 

Liliana Burger, Product Manager in the after-sales department at Divemotor, in Peru, underlines that face-to-face contact is truly worth it, compared to online communication. “Of the 41 companies I interacted with in the Business Round, eight have great potential to become our suppliers. From now on, we will start looking at quotes and analyze the possibilities. 45% of our imports for light and heavy vehicles already comes from Brazil”, she says.

The initiative also received positive reviews from the Brazilian manufacturers. Jefferson Merli, Sales Director of Marília, stressed that the Business Round can open new markets. “The business rounds are very well targeted. We were able to start promising businesses, especially with distributors”, says Merli.

Mozart Cardoso, director of MZK Indústria Automotiva, also highlighted the impact of the event on the growth of his company’s exports. “We expect to close good business deals. Some companies have even asked for samples of our products. Currently, about 15% of our revenue comes from exports to Argentina, Bolivia, Chile, Ecuador, and Venezuela. We estimate that this percentage may increase to 30% in one year, thanks to the results of the Business Round and our participation in other events set up by BAP”, says Cardoso, who is confident about the growth of the industry.

Initiatives like business rounds facilitate direct contact between Brazilian manufacturers and foreign buyers, including distributors and importers, and create opportunities for increasing exports in the industry. If you are willing to find suppliers among Brazilian auto parts manufacturers, BAP can help your company connect with them. You can engage in business rounds like this one, and find the companies at the international events that we attend. All you need to do is contact us through our communication channels.

Brazil has record participation at AAPEX 2024

23 companies showcased their products in the pavilion set up by Brasil Auto Parts at AAPEX Show, one of the world’s largest events in the aftermarket industry.

Held from November 5 to 7 in Las Vegas, in the US, AAPEX was the last trade fair on BAP’s calendar of events in 2024. The trade show brought together more than 2,500 exhibiting companies from 140 countries, offering more than 1,400 product categories, and it attracted an audience of around 47,000 players from the automotive industry. 

At the trade fair, the Brazilian exhibitors made 534 commercial business contacts; 375 of them were new ones. The outcome was positive: they earned USD 1.760 million in immediate business and expect extra revenues of USD 14.250 million over the next 12 months. Visitors came from a wide range of countries, including the host, USA, as well as Australia, Canada, Chile, China, Colombia, Costa Rica, India, England, Mexico, Peru, Puerto Rico, and Venezuela.

Our Trusted Partners - ABR, Ampri, Autolinea, Centralsul, DS Schiavetto, Fey, HBR, Hipper Freios, Iguaçu, KSPG, Mangels, Maringá, Metalmatrix, Plasticomp, Ponteiras Rodrigues, Rainha das Sete, Ranalle, Reserplastic, Riosulense, Robiel, Suporte Rei, Susin and SYL) - are eager to return as exhibitors in 2025 and took advantage of the event to meet customers, interact with business prospects, and do benchmarking and a great deal of networking. 

“AAPEX has proven to be a good platform for those who have an interest in the aftermarket, because it attracts players with real decision-making capacity to close deals”, says Fernanda Garavello, BAP’s Coordinator.

The 2024 edition of AAPEX was another milestone for Brasil Auto Parts, and it showed that Brazilian companies have a growing capacity to expand their operations and enter new markets. We hope to see you soon at other international events.

Hipper Freios takes the lead to conquer the US market

The Brazilian company is the official supplier of brakes to Stock Car Pro Series Brasil, and invests in technology and innovation to meet the needs of the US market.

A leading supplier of brake discs and drums to the Brazilian market, located in Sangão, Santa Catarina, Hipper relies on its expertise, quality, and productive capacity to expand its international operations, especially in the United States, a market traditionally dominated by Asian suppliers.

Hipper Freios entered the US market in 2016, driven by its ability to offer competitive options, especially after the increase in tariffs on Chinese products. The use of proprietary technologies, for example, the cross-grinding technology Hipper Grinding, and the commitment to international quality standards (ISO 9001 and ISO 14001), have positioned the company as a reliable and innovative supplier. The company stands out for its transparency, logistics efficiency, and awareness of the cultural differences and business needs of the American market.

Over time, the company has gained experience in dealing with US clients; it adopted attractive pricing policies that are aligned with their specific needs, and introduced practices to streamline restocking, for example, using integrated systems for placing purchase orders. “Ever since the first shipment, a container with two thousand parts, the company’s exports have increased and now amount to millions of parts sold directly to distributors in the United States,” says Guilherme Schelp, the company’s Executive Sales Manager.

To remain competitive, Hipper Freios relies on its own moldmaking infrastructure and on verticalized production rather than outsourcing. This ensures agility, strict quality control, and the ability to fulfill custom orders. During audits, technical standards are reviewed accurately, and adaptations are made to ensure the company is keeping up with changes in the production chain. By allowing for flexibility and investing in technology, the company maintains its position as a leading player in a constantly evolving market.

In addition, the pandemic was a window of opportunity for Hipper Freios. It quickly adapted to the lockdown scenario, optimized inventories, and increased its market share in challenging times. Strategies such as tailoring products for the U.S. fleet and negotiating private label agreements have also been key to consolidating its presence in the United States. 

Having one of the most modern foundry and machining facilities in Brazil helps Hipper Freios to remain competitive abroad and deliver high-performance products to more than 20 countries. The company’s commitment to technological innovation and customer service will continue to guide its business growth. And this is the advice that the company gives the entire Brazilian auto parts industry: “Acquire knowledge, and focus on product research and development. That’s the path to success,” says Schelp. 

FORECAST

Forecast is the term used to refer to predictions or estimates of future events, based on available data and information. In the Brazilian auto parts industry, forecasting is widely used for developing strategic and production plans, allowing more informed decisions in future scenarios.

Sindipeças established a Forecast Committee many years ago to make estimates for the Brazilian automobile production in the current financial year (plus four years ahead). This working group meets every three months to analyze the activities of automakers and other manufacturers of vehicles, machines, and engines, taking into account multiple variables and their impact on the auto parts sector.

This committee is currently making estimates for Argentina, the main destination of Brazilian auto parts, and providing data that can be used to define the export strategy of the member companies.“The automotive sector is very globalized. Manufacturers always look for suppliers that offer more advantages, so this is why we need to evaluate all scenarios”, says Carlos Cavalcanti, financial advisor at Sindipeças.