Exports of automobiles to Brazil registered a 43.6% increase on a year-on-year basis during the first five months of the current fiscal and it offers a huge opportunity for the engineering sector considering the Latin American country is one of the most prominent automotive markets in the world, EEPC India chairman Arun Kumar Garodia said. Speaking at the second edition of Virtual Business Meet with Buyers from Brazil, Garodia said that India’s engineering exports to Brazil reached its record high at $1.8 billion in 2021-22 witnessing a compounded annual growth of as high as 20% in the last four fiscals. “Commercial relations between India and Brazil are already deep-rooted with India being the 5th largest trade partner of Brazil and one of the top 15 suppliers of auto components to Brazil with a share of 2.7% in Brazil’s global import," said EEPC India Chairman at the virtual meet.
Manisha Swami, Consul General of India to Brazil, noted that within the overall auto exports to Brazil, auto components form the largest share with an average 90%. “In terms of Brazil’s market, India is among the top 15 suppliers of auto components to Brazil with a share of around 2.7%. China remains the largest supplier with a share of 12.8%. Other major suppliers include Japan and South Korea in Asia, Mexico and USA in the NAFTA region and Germany, Italy and Sweden from the EU," Swami said. She further said auto components are among the key items imported by Brazil from India but their share in Brazil’s basket is still not very significant and hence there is still untapped potential.