Sao Paulo, Brazil, 7 Aug – Brazilian imports of automobile components from China were worth US$ 146.5 million in the fist half of the year compared to US$ 92.9 million in the first six months of 2006.
A report Tuesday from the National Union of Auto Component Industries (Sindipeças) said that although China is currently Brazil’s eighth-largest supplier of auto parts, the emerging Asian economy is soon expected to become the largest source of imported components.
BorgWarner and Honeywell, both turbocompressor makers, are to boost their Chinese imports from 2008.
Sergio Castioni Veinert, BorgWarner’s Brazil director, said 34 percent of the company’s products were currently imported from Germany, the UK and the United States. But these imports will increase to 45 percent next year and China will become the main import market, he added.
Honeywell also plans to boost its imports next year from the current 25 percent to 40 percent and China is a likely source of business for the company.
“To reduce costs we will begin to import metal parts from China, Eastern Europe and even Western Europe,” said José Rubens Vicari, Honeywell’s Brazil director.
Due to the continuing slide in value of the US dollar, Sindipeças says the trade balance for the auto parts sector is not expected to exceed US$ 500 million this year. At the start of the year this figure was expected to have reached US$ 1.8 billion.
Brazil’s total exports of auto parts in the first half of the year were worth US$ 4.243 billion to 166 countries an annual growth of 1.2 percent. Imports from 113 countries were worth US$ 4.129 billion, an annual growth of 23.5 percent. (macauhub)