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From the arrival of the first car brought by Santos Dumont to the creation of large car manufacturers in the ABC region of São Paulo, Brazil built one of the largest automotive industries on the planet — a path marked by political decisions, a world war, state incentives and millions of vehicles on the streets
The automobile is part of the story in Brazil for over a century. Since the end of the 19th century, cars began to circulate on the country's streets, marking the beginning of a long trajectory that would come to be consolidated with the national automobile industry.
The first motorized car arrived in Brazil in 1891, at the port of Santos. It was a Peugeot Type 3, imported by Santos Dumont. After that, others came, brought by influential families and journalists. But the first officially registered car belonged to Count Francisco Matarazzo, in 1903.
The arrival of foreign car manufacturers
In the following decades, the country began to follow the path of industrialization. In 1919, Ford became the first automaker to set up shop in Brazil, assembling the Model T, known as the Ford “Bigode,” in São Paulo.
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Six years later, in 1925, it was General Motors' turn to open its doors in the capital of São Paulo. The arrival of the automakers coincided with the emergence of the country's first paved highway, the Rio-Petrópolis, which reinforced the importance of automobiles.
Between 1920 and 1939, the number of cars in São Paulo jumped from 5 to 43. This growth showed that cars were already part of Brazilian urban culture and daily life.
The impact of World War II
At the end of the 1940s, Brazil still had an aging fleet, made up of American and European vehicles from the 30s.
The situation began to change between 1941 and 1945, during the Second World War, when there was an increase in the number of auto parts factories in the country. By the end of the war, Brazil already had around 50 parts manufacturers, which would be essential for the development of local vehicle production.
Actions of the Getúlio Vargas government
Until that moment, cars sold in the country were only assembled here. The change began with policies of the Getúlio Vargas government, which created the basis for national production.
Among the main initiatives were the creation of the National Steel Company (CSN) and the National Motor Factory (FNM), both in the state of Rio de Janeiro.
From 1947 to 1952, the government also began to restrict imports of cars and parts. This change was intended to encourage domestic production.
Even so, with the favorable exchange rate, European models gained traction on Brazilian streets. By 1950, it was already common to see English vehicles circulating here, replacing American ones.
Juscelino Kubitschek's ambitious plan
The real boost for the automobile industry came during the government of Juscelino Kubitschek. In 1956, he created the Executive Group of the Automobile Industry (GEIA), through decree nº 39.412.
The goal was ambitious: to make Brazil capable of manufacturing its own automobiles, with a high rate of nationalization. At the time, the country had a fleet of 800 vehicles and a high demand for cars and trucks.
Industry came to be seen as a pillar of development. JK's plan to advance “50 years in 5” included the creation of factories, supplier networks and supporting infrastructure.
That same year, the first fully Brazilian car appeared: the Romi-Isetta. Manufactured by Romi, a lathe and agricultural machinery company, the model stood out for its compact size, small wheels and a single front door.
Also in 1956, FNM and Vemag launched their own models. They were still copies of foreign cars, but production was already taking place in Brazil.
Import ban and industry consolidation
In 1953, an important measure accelerated this process: the ban on importing entire vehicles. As a result, automakers such as Volkswagen, Mercedes-Benz and Willys-Overland became national factories.
GEIA established clear goals: by 1960, 90% of trucks and utility vehicles sold should have national parts. The goal was met and exceeded. The automobile industry grew stronger and expanded.
The ABC region of São Paulo — São Bernardo do Campo, Santo André and São Caetano — became the country's main automotive hub. In the 70s, other car manufacturers emerged in new regions. Fiat established itself in Minas Gerais, Agrale in Rio Grande do Sul and Volvo in Paraná.
The last relevant piece of information is that, with decades of investment and industrial policies, Brazil has built one of the largest automotive industries in the world, with deep roots in the country's economic and social development.
With information from TG Poli.
