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Brazil's ambition to position itself as a leader in the production of hybrid cars is a strategy that is shaking up the behind-the-scenes of the automotive industry. With bold plans to not just import electric vehicles but produce them domestically with advanced technology, the country is aiming high to stand out globally.
According to Aloizio Mercadante, president of BNDES, Brazil does not just want to import technology, but to develop it right here. “We are not interested in just importing electric cars. We want investment in Brazil,” said Mercadante at a recent seminar on the 50 years of diplomatic relations between Brazil and China.
“We want to produce electric buses and hybrid cars here, which is our vocation, after 50 years of ethanol. The hybrid car will have twice the range of the electric car. And it decarbonizes more than electricity,” he highlighted.
A Nova Indústria Brasil (NIB), launched in January this year, it is industrial policy that is driving these audacious objectives. The plan seeks to attract foreign investments committed to technology transfer and the generation of jobs and income in the country.
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In the automotive sector, this technology transfer will be crucial for the development of innovative projects, such as hybrid cars – which combine electrical energy and biofuel.
During the seminar held in Brasília, Mercadante emphasized the importance of strengthening the production chains of Brazilian industry, especially in the renewable energy sectors. He cited, among other examples, the production of green hydrogen and electric vehicles, highlighting the role of BNDES in promoting these projects through NIB and the Mais Produção Plan.
“What interests me most here, in this discussion, is the route that China followed to get where it is, always requiring technology transfer for foreign investment,” Mercadante said. “We want a lot of investment from China, a lot of Chinese presence, but within Brazil, producing here, generating employment, generating work.”
Uallace Moreira, Secretary of Industrial Development, Innovation, Commerce and Services at MDIC, also highlighted the importance of attracting foreign direct investments that are strategic for economic development. “One of the strategic points for promoting economic development is direct foreign investment. However, not all foreign direct investment is positive,” warned Uallace.
“If investment enters Brazil by denationalizing production capabilities, reducing the degree of vertical integration, increasing imports and sending profits back to its headquarters, you are deepening external dependence, you are destroying a nation's capacity for development,” he explained.
To avoid these problems, Uallace highlighted that investment must play a strategic role. “NIB has this purpose of using foreign direct investment, of using partnerships with countries like China, as a strategic element,” he stated.
“In the neo-industrialization project of President Lula's government, led by vice-president and minister Geraldo Alckmin, what we want is to make industry once again the protagonist of economic growth, job creation and income in this country.”
Industrial policy, according to Uallace, must be used as an instrument to reduce inequalities. “There is no economic development without industry. There is no social inclusion without industry. A technology-intensive, technologically complex industry, demands high-skilled, high-income services, generating employment, income and promoting the process of economic development,” he concluded.
Brazil's bold strategy to lead in hybrid car production not only aims to transform the automotive industry, but also strengthen the economy and promote social inclusion. With the transfer of technology and the attraction of strategic foreign investments, from brands such as Toyota, Volkswagen e Chevrolet, the country seeks to ensure sustainable growth and a prominent position on the global stage.
And you, what do you think about Brazil becoming a leader in the production of hybrid cars? Will this bold strategy bring the expected results? Comment below!
