The 28.5% increase in Chinese auto parts purchases was crucial to the 11.5% rise in total automotive component imports in 2024, which reached a record $20.9 billion, up from $19.77 billion in 2023. On the other hand, auto parts exports fell by 12.9%, dropping from $9.1 billion to $7.9 billion in the same period.
Here is a historical overview of Brazil’s auto parts imports from China starting in January 2021. The data is from DataLiner:
Autoparts Imports from China | Jan 2021 – Nov 2024 | TEUs
Source: DataLiner (click here to request a demo)
As a result, the sector’s trade deficit increased by 34% compared to 2023, totaling $13.1 billion. “This result is 51% higher than the median deficit recorded between 2014 and 2023,” Sindipeças reported in its 2024 trade balance report.
The organization attributes the rise in imports to the domestic market expansion and, most notably, to the growth of electric and hybrid vehicles, which incorporate more technologically sophisticated components unavailable locally.
It is important to note that Chinese car imports grew by 187%, from 42,000 to 120,300 units, a volume that represented 26% of total vehicle imports last year.
China has been the leading auto parts supplier to the local industry since 2018. A total of $3.87 billion worth of parts were imported from China, a 28.5% increase compared to $3 billion in 2023, accounting for 18.5% of the sector’s foreign purchases.
The United States, the second-largest trade partner, held a 10.7% share, with a 5.6% drop in exports to Brazil, from $2.37 billion to $2.24 billion (see table below).
“Although their relative market share is not as significant, it is worth noting the double-digit increase in imports from Mexico (16.3%), Sweden (26.9%), Turkey (22.7%), France (15.7%), India (13.3%), and Eastern European countries such as Poland, Romania, and the Czech Republic,” Sindipeças revealed.
Regarding exports, the organization pointed to weak performance, with declining sales in key markets for Brazilian auto parts, such as Argentina (-17.7%) and Germany (-34.6%), both affected by economic slowdowns, as well as Colombia (-28.0%) and Italy (-23.5%).