Brazil's auto parts supply has a lot of investment space

Brazil's domestic auto market is in short supply, and auto import pressure has increased. The direct reason for this is the severe shortage of Brazilian auto parts supply.

Leticia Costa, Director of PradaAssessoria, a Brazilian automotive consultancy, said: “A lot of people are only concerned about the impact of raw material prices on auto parts supply, but they have overlooked the fact that Brazilian auto parts supply chain is not competitive as a whole.”

Paulo Bedran, an official from Brazil's Ministry of Commerce and Industry Development, said: "The Brazilian government is actively working hard to provide low-interest loans for auto parts makers. If we do not pay attention to the development of the parts supply chain, we will become another Belgium that will only assemble cars."

Ivan Ramalho, another Brazilian government official, said: "The total value of auto parts in Brazil this year will reach 45 billion rials (about $25.6 billion), half of which will be imported from abroad. On the positive side, this shows that Brazil The auto parts industry still has a lot of investment space."

Osias Galantine, purchasing director of Fiat Brazil, said: “Brazilian component suppliers need to modernize their production and increase the quantity and quality of their products to meet the needs of the automotive consumer market in Brazil.”

India's parts shortage consumers can not wait for a few months

Bloomberg reported on August 18 that due to the shortage of parts and components, Indian consumers are still waiting for several months and still fail to provide certain models for Volkswagen and Suzuki. The Bombay jewelry designer named Utkarsh Parasrampuria had waited for about three months without mentioning Volkswagen Polo. He said he did not know when he would mention the May delivery of $12,400 for Polo.

In addition to Volkswagen and Suzuki, certain modern models also need to wait to mention the car. Due to the shortage of auto parts such as batteries and engine castings, Hyundai has already controlled its production in India. Tata Motors is importing tires from China because local parts suppliers have failed to meet the expanding market demand. In the second quarter, due to the shortage of spare parts, Mahendra made a 12% drop in cars. Honda Motor Co., the largest motorcycle manufacturer in India, has not yet completed the expected production target of 80,000 units in the second quarter.

Industry insiders believe that the difficult to mention cars cannot be resolved within at least three to four months.

Detroit Automaker Suspends Production to Address Component Shortages

According to reports from foreign media on July 19, due to the adverse impact of component shortages caused by the tropical storm Alex on the Gulf of Mexico, major automakers in Detroit had to be forced to declare their suspension of their automobile assembly plants in North America in response to supply. There is a shortage of goods.

It is understood that General Motors has cancelled the three-shift operation of its Flint truck assembly plant in Michigan this Friday due to the shortage of components caused by the hurricane.

Shortage of parts and components Nissan claims or suspends production in the United States and Mexico

Japanese automaker Nissan announced in July that it may suspend production in the United States and Mexico due to delays in the delivery of engine control systems. Previously, Nissan has announced that it will interrupt production in Japan.

Nissan’s chief operating officer in North America, Toshiyuki Shiga, told the media: “We are evaluating the inventory situation and considering appropriate countermeasures.” Currently, Nissan has a total of three factories in the United States with total annual vehicle production capacity. It reached 950,000 vehicles. In addition, Nissan has four manufacturing plants and distribution centers in Mexico and the total annual production of cars exceeds 300,000.

Nissan Motor Co., Japan's third-largest automaker, announced on Monday that it will suspend its Japanese production work from this Wednesday. The entire process will last for three days. Nissan said that its supplier, Hitachi, was unable to provide parts on time as a direct reason for its suspension of production.

Hitachi has previously stated that the company could not obtain a custom integrated circuit from a supplier in a timely manner, while the latter is the main component of its production engine control system. However, Hitachi did not disclose the identity of this supplier.

Shih Joon expressed: “This incident is an accident. We do not have a viable immediate solution to this incident. But I hope that Nissan will be prepared to respond to this emergency situation in the future.”

It is reported that the delayed delivery of Hitachi’s company also affected Honda Corporation and Subaru brand car maker Fuji Heavy Industries, but its impact on Nissan’s companies was the most serious. At present, 90% of the engine control systems produced by Hitachi are used to supply Nissan.

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