As prospects for Brazil’s automotive industry, a major consumer of steel, remain bearish, automakers are targeting the export market to fight the declined demand for autos domestically.
Antonio Megale, the new president of Anfavea, Brazil’s automotive industry association, said the industry’s capacity utilization is around 50 percent. “The export market is an excellent exit. We’ve exported 900,000 vehicles per year [in a given year], but we’re now exporting about 400,000 autos per year. It’s obvious we can grow,” Megale said.
The new executive, who should remain in the president seat until 2019, said Anfavea is currently helping the Brazilian government to negotiate new bilateral agrements and strength existing ones.
The executive showed confidence in the renewal of the automotive agreement Brazil currently has with Argentina, one of the nation’s main export markets.