Brazil Truck and Bus Market Size, Share, Industry, Forecast and outlook (2024-2031)

Market Overview

Brazil Truck and Bus Market is expected to grow at a Significant CAGR during the forecast period (2024-2031).

• The Brazilian automotive industry struggled during the mid-2014 to 2016 crisis period that had ended in 2017, since then, the Brazilian truck & bus market is growing at a moderate pace with a recovery in the economy.
• Currently, the Brazil truck & bus market is one of the most lucrative markets due to its unique dynamics. In BRICs, Brazil is the primary business sector that is ruled by the European Auto Manufacturers, and it’s not by any stretch of the imagination, a price delicate business sector.
• Brazil is one of the world’s most significant automobile assembling markets, has been seeing a stable development contrasted with the worldwide auto industry because of strong local interest and regularly expanding exports market.
• In Brazil, trucks are mostly utilized as an essential method of transportation for freight transport. This administration in the nation is mainly provided by various autonomous proprietors, who are not yet capable of delivering a sizeable unified 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.

Market Summary

For more details on this report - Request for Sample

Market Dynamics

• Increasing demand for automotive vehicles, i.e., buses and trucks are driving the need for 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 critical investment policies the Brazilian government had taken to boost the economy of the country.
• Brazil's 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 unveiled its new investment plans in bus and truck plants in Brazil.
• Brazil has imposed 35% duties on imported commercial vehicles and spare parts, to promote local production in the country.
• However, the high cost of the truck & bus that are imported specially from Europe is pushing down the domestic truck & bus manufacturing industry.

Market Segmentation Analysis

• Brazil truck & bus Market segmented by 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 significant 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.
• The heavy trucks segment is accounted for a predominant share in the truck market, as they are mainly used in interstate transportations through which a large part of freight transport occurs between different places and it also provides high mileage to the vehicles owners that are running across states.
• The growth of the Medium truck segment is slow compared to the light and heavy truck segments, and it offers attractive growth opportunities especially driven by the growing e-commerce and logistics market. Expansion of logistic services in the country also supported the growth of medium trucks in recent years.
• Based on the Bus Axle type, it is segmented into the single axle and multi-axle. The multi-axle is the dominating segment in the Brazilian 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 the addition of new routes in the country have further supported the growth in the multi-axle segment. The rising middle-class population is increasingly opting for a comfortable journey. Slow growth in the Single axle segment is due to the less demand in the Brazilian market.

Market Key Players

• 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 would use around 1,600 electric trucks made by Volkswagen Caminhões e Ônibus (VWCO) to transport beverages by 2023.