Targeting Car Buyers in Brazil

The Brazilian market for vehicles and accessories is one of the largest in the world, as these products remain a fundamental part of the country’s consumer culture. In this article we will trace the profile of vehicle consumers and list the largest media outlets in this segment in Brazil.

Car Market in Brazil

Since the urban development of Brazil, automotive vehicles have become one of the main forms of transportation and some of the most desired products by the country’s population. The Brazilian car culture is well known worldwide and serves as a representation of the many opportunities that local and foreign players face when entering this market.

According to market intelligence provider JATO Dynamics, 3.3 million brand new vehicles were sold in Brazil in 2014, which makes the country the fourth largest automotive market in the world, topped only by China, the United States and Japan. The country also features a substantial used car market, as 13.3 million units were commercialized during the same year, according to data by Fenauto, or the National Federation of Automotive Vehicle Resellers.

The vast majority of cars in Brazil are sold through dealerships and used car dealers, as the internet is reserved for used vehicles marketplaces and to a small number of manufacturers who pioneer in the e-commerce sales model. Still, the internet plays an important role for vehicle buyers, as research from 2014 by market intelligence provider J.D. power indicates that 50% of car buyers in the country use information gathered online to make purchase decisions.

Consumer Profile

Even though car buyers can be found across all Brazilian regions and adult age groups, some segments of the country’s population present larger opportunities for players in the automotive sector.

In terms of regional segmentation, it is worth noting that the largest number of car buyers are present in the Southern regions of the country. According to the Brazilian traffic authorities, the South and Southeast regions combined make up for 76% of the country’s vehicle fleet, while the remaining vehicles are divided into the North, Northeastern and Central-West regions.

A study from 2014 by credit scoring company Serasa Experian presents intriguing insights into the profile of Brazilian vehicle buyers. According to the report, most of these purchasers are young adults located in suburbs of Brazilian cities and adults between the ages of 30 to 60 located in urban areas, which together account for over 40% of vehicle buyers in the country.

Other representative segments include urban working class and middle class independent professionals, which take up 24,2% of buyers, and business owners, who represent 12,6% of buyers.

Vehicle Accessories Buyers

The market for vehicle accessories also presents a significant opportunity in Brazil. According to a report by consultancy company Roland Berger, this segment is sized at BRL 20 billion, of which BRL 2 billion alone is represented by sound equipment and accessories. Among the most searched vehicle accessories in the country are aluminum rims, multimedia equipment, GPS, comfort and security items and tuning products.

Their research highlights young male adults, between the ages of 20 to 30, as the main consumers of car accessories in the country. Most of these buyers are found in social classes B and C, or the country’s middle and middle to high classes.

Specialized Outlets

Many Brazilian media outlets specialized in the coverage of the automotive market have been established and serve as one of the main sources for consumers to gather information on vehicles and brands available in the country. Some of these outlets are:

• Quatro Rodas: Established in 1960, Quatro Rodas magazine is one of the largest and most traditional automotive media outlets in the country, with special sections reserved for the coverage of motorbikes and autosport championships
• Auto Esporte: Magazine focused on news coverage, reviews of new models and providing tips to car and motorcycle drivers
• Car and Driver Brasil: National edition of one of the world’s most prestigious automotive magazines which offers coverage focused on the country’s market
• Carplace: Website focused on coverage of local news for the automotive segment
• Flatout: National website which provides car model comparisons, reviews, driving tips and coverage of events
• Vrum: Vehicle classified marketplace that provides news coverage for this segment