South American Auto Market to See Significant Growth by 2025

  South American Auto Market to See Significant Growth by 2025

IHS Automotive helping government, automakers meet new fuel efficiency,
emissions standards

Business Wire

SAO PAULO -- June 24, 2013

The South American automobile market will grow significantly by 2025, becoming
one of the top three growth markets globally for light vehicle sales and
presenting opportunities for improvements in fuel efficiency and reduced CO2
emissions, according to a forecast by IHS Automotive, the leading provider of
comprehensive content, expertise and insight on the global automotive

IHS Automotive forecasts that nearly 2.3 million additional vehicles will be
sold in South America by 2025, equal to the output of 10 modern assembly
plants. Most of the growth will occur in Brazil, followed by Argentina and

Brazilian lawmakers late in 2012 enacted legislation providing tax benefits
aimed at encouraging manufacturers to improve vehicle efficiency and reduce
carbon emissions, and increase local research and innovation. Brazil Ministry
of Trade and Industrial Development (MDIC) hired IHS Automotive Consulting to
help them understand the growth potential under the new law and provide
guidance on how Brazil could significantly improve the fuel efficiency of
Brazilian vehicles and reduce CO2 emissions by 2017.

Paulo Cardamone, Managing Director, IHS Automotive Brazil, says, “The new
automotive regime will promote green technology, help Brazilian consumers by
significantly improving the fuel efficiency of light vehicles and, in the
process, make Brazilian vehicles technically competitive with those in Europe,
the U.S. and Asia. Brazil can become a net exporter of vehicles in the not too
distant future.”

There will be a significant increase in demand for utilization of new green
technologies to support Brazil’s new program for Incentive of Technological
Innovation of the Production Line of Automotive Vehicles (INOVAR-AUTO),
Cardamone says, adding that key technologies like direct injection, turbo- and
super-charging, stop/start, advanced multi-speed transmissions, roll resistant
tires, light weighting and many other related technologies will be in demand.

Paul Haelterman, Vice President of IHS Automotive Consulting, says, “These
innovations will lead to a rapid improvement in the automotive industry and,
more importantly, the lives of every day Brazilians, whether they drive a car
or not, as this will be a huge contributor to reduced pollution levels in

IHS is working with several automakers and suppliers to help them understand
and implement plans to support the new requirements in Brazil.

Additional information about industry developments in South America is
available by contacting IHS Automotive experts Bruce Harrison (North America)
at +1.781.301.9136 or; Reinhard Schorsch (Europe,
Middle East, Africa) at +49.6920.973.344 or; James
Chao (Asia) at +86.21.2230.2288 or; and Paulo Cardamone
(South America) at +55.19.3295.8740 or

About IHS (

IHS (NYSE: IHS) is the leading source of information, insight and analytics in
critical areas that shape today's business landscape. Businesses and
governments in more than 165 countries around the globe rely on the
comprehensive content, expert independent analysis and flexible delivery
methods of IHS to make high-impact decisions and develop strategies with speed
and confidence. IHS has been in business since 1959 and became a publicly
traded company on the New York Stock Exchange in 2005. Headquartered in
Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth
and employs 6,700 people in 31 countries around the world.

IHS is a registered trademark of IHS Inc. All other company and product names
may be trademarks of their respective owners. Copyright © 2013 IHS Inc. All
rights reserved.

IHS Automotive

IHS Automotive offers clients the most comprehensive content and deepest
expertise and insight on the automotive industry available anywhere in the
world today. Our suite of services includes vehicle forecasts, current market
performance, and future automotive technologies. IHS Automotive was created
through the integration of CSM Worldwide and IHS Global Insight’s Automotive
Group (including and, and more recently
iSuppli, IMS Research, and BDW Automotive. For more information about IHS
Automotive, please visit or e-mail


IHS Inc.
Jim Dorsey, +1-781-301-9069
IHS Press Desk, +1-303-305-8021
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