Brazil: new trends, awaiting consolidation...

This is certainly putting pressure on wages, leading to an estimated inflation rate of 4.5% in 2025, which is the country's main problem with refinancing rates reaching record highs (12% compared to 2.25% in Europe)!

Growth in the new vehicle market is slowing after two years of more than 12.5%: 2025 is expected to end at “only” +5%, or 2.5 million registrations. This growth is being driven by sales of electric and hybrid vehicles, which now account for 10.5% of sales! While combustion engine vehicles increased by around 30,000 units compared to the previous year, these new technologies jumped by 90,000 additional registrations! This “novelty effect” – concentrated in large urban areas – occurred in a market still largely dominated by bioethanol (75% of the fleet). Above all, the arrival of these new technologies in registrations coincided with the first steps of Chinese brands on the Brazilian market: ‘Most of these registrations were for Chinese models; from four brands last year, there are now 10, which already accounted for 4% of registrations at that time,’ points out Laurent Guerinaud, director of Gipa Brazil...

DPK, Comolatti, Fortbras (a company currently on the rise with more than 250 stores in some 20 states across the country)... While certain champions are emerging in the independent distribution landscape, which still accounts for around 80% of the after-sales market, this is not enough to claim national coverage of this huge market. Another problem highlighted by Laurent Guérinaud is that these players are currently struggling to offer a comprehensive catalogue, and many maintenance professionals are juggling between several distributors! On the other hand, brand representatives are trying to increase customer loyalty, but the network of 3,700 dealerships across the country pales in comparison to the more than 100,000 independent service points! And the few multi-brand networks, such as Bosch Car Service, DPaschoal (DPK – Stellantis), and ACDelco, a network of auto centres launched in 2023 and based on General Motors' eponymous multi-brand programme, are not yet sufficiently visible on the market.

However, Stellantis' acquisition of DPK in early 2024 appeared to be a first warning shot for the competition in the race for market concentration. "There is a certain buzz around the automotive aftermarket in Brazil, with a particular focus on data and, more broadly, a sector that is becoming more professional. This market, which until now has been fragmented with a multitude of small distributors, could change... in fact, the American giant AutoZone (Editor's note: 7,700 stores worldwide) entered the market last year!" says Gipa Brazil' director.

The automotive aftermarket sector in Brazil is doing well, with volume growth in the range of 2 to 6% (Editor's note: projections are made in volume and not in value due to the high volatility of prices from one player to another, with current projections ranging from 6 to 17%). The fleet of 55 million vehicles (passenger cars and light commercial vehicles) is ageing, which is bringing new offers to the market. This is particularly the case for private brands, such as Authomix, the distributor Comolatti's own brand of spare parts. Although it has been around for 20 years, it is becoming increasingly visible. In parallel with its Mopar/Eurorepar offering, Stellantis has launched a range of remanufactured parts and has also invested in used parts with a dismantling site, ‘a real novelty, as this type of offering was virtually non-existent in Brazil, but these circular economy initiatives are now supported by the government,’ points out Laurent Gérinaud. In this case, it is an offering that is meeting growing demand, driven by a fleet whose average age has passed the 10-year mark.