Competition in the Brazilian premium car market in 2007—2021

The article presents the analysis of the competition development on the Brazilian premium automotive market in 2007-2021. The SV matrix is used as an analytical tool that allows to track changes in different industries. Results of the study show that the premium segment of the automotive market responds to economic shocks better than the mass segment. In the second half of the 2010s the market was finally formed and achieved the high concentration, the dominant group of companies expanded. Competition in the Brazilian auto market today can be characterized as the "Big Five": five equally large companies control almost the entire market. However, considering the competition between automotive holdings, there is a clear dominance of Daimler company. In contrast to the situation in Russia, during crises, the premium segment of the Brazilian car market declines along with the mass segment, which can be explained by the population of the upper middle class being less resistant to external shocks and a smaller share of the wealthiest population.

Keywords

economic dominance, Brazil, SV matrix, premium segment, competition, automotive market, automotive holdings

Received

19.12.2022

Publication date

04.05.2023

Number of characters

21244

Cite

GOST	Spektor S., Vertogradov V. Competition in the Brazilian premium car market in 2007—2021 // Latin America – 2023. – Issue 4 C. 39-52 [Electronic resource]. URL: https://latamerica-journal.ru/S0044748X0023732-4-1 (circulation date: 14.05.2024). DOI: 10.31857/S0044748X0023732-4
MLA	Spektor, Stanislav, Vertogradov, Vladislav "Competition in the Brazilian premium car market in 2007—2021." Latin America 4 (2023):39-52. DOI: 10.31857/S0044748X0023732-4
APA	Spektor S., Vertogradov V. (2023). Competition in the Brazilian premium car market in 2007—2021. Latin America (4), pp.39-52 DOI: 10.31857/S0044748X0023732-4

100 rub.

When subscribing to an article or issue, the user can download PDF, evaluate the publication or contact the author. Need to register.

Number of purchasers: 0, views: 175

Readers community rating: votes 0

1. Spektor. S. V., Konkurentsiya na avtomobil'nom rynke Brazilii v 2011—2021 gg., Latinskaya Amerika, Moskva, 2022, № 7, ss. 21-34. [Spektor. S. V., Konkurenciya na avtomobil'nom rynke Brazilii v 2011—2021 gg. [Competition in the Brazilian automotive market in 2011—2021]. Latinskaia Amerika. Moscow, 2022, no. 7, pp. 21-34. (In Russ.) DOI: 10.31857/S0044748X0019795-3

2. V. A. Vertogradov i S. V. Schelokova, Strategii premial'nykh avtomobil'nykh brendov v Rossii i dejstviya regulyatora (2009–2021 gg.), Mir novoj ehkonomiki, Moskva, 2022, №16(2), ss. 64-75, 2022. [Vertogradov V.A., Shchelokova S.V., Strategii premial'nyh avtomobil'nyh brendov v Rossii i dejstviya regulyatora (2009–2021 gg.) [Premium Car Brands Strategies and Regulator’s Actions in Russia (2009–2021)]. The world of new economy. 2022, №16(2), pp. 64-75. (In Russ.)

3. Afanas'ev S., Kondrat'ev V. Avtomobil'naya promyshlennost' stran BRIK. Mirovaya ehkonomika i mezhdunarodnye otnosheniya. Moskva, 2014, № 9, ss. 55-65. Afanas'ev S., Kondrat'ev V. Avtomobil'naya promyshlennost' stran BRIK [Automotive industry in BRIC countries]. Mirovaya ekonomika i mezhdunarodnye otnosheniya. Moscow, 2014, N 9, pp. 55-65. (In Russ.) DOI: 10.20542/0131-2227-2014-9-55-65

4. M. J. Vargas da Cruz, C. F. Camargo Rolim. The Brazilian automotive industry in the BRICs context: the case of the Metropolitan Region of Curitiba. Cambridge Journal of Regions. Cambridge, 2010, Vol. 3, N 3, pp. 319-334.

5. A. Eh. Ershova i A. N. Kuznetsov, Strategii konkurentnogo razvitiya kompanii BMW Group, Strategii biznesa, t. 5, pp. 26-29, 2019. [Ershova A.E., Kuznetsov A.N., Strategii konkurentnogo razvitiya kompanii BMW Group [Strategy competitive development of the company BMW group]. Business Strategies. 2019, № 5, pp. 26-29. (In Russ.) DOI: 10.17747/2311-7184-2019-5-26-29

6. Beynon H., Ramalho J. R., The transformation of the automobile sector in Brazil-a new way of producing cars, Conference Approaches to Varieties of Capitalism, CRIC, ESRC, University of Manchester, 1999.

7. Bastian-Pinto C., Brandão L., de Lemos Alves M., Valuing the switching flexibility of the ethanol-gas flex fuel car, Annals of Operations Research. Springer, New York, 2010, Vol. 176, № 1, pp. 333-348,.

8. Diniz C., The Luxury Market in Brazil, Palgrave Macmillan, 2014 pp. 24-42,.

9. Brazil Inflation Rate 1981-2022. Available at: >>>> (accessed 09.08.2022).

10. J. Sicsú, A. de Melo Modenesi, D. Pimentel. Severe recession with inflation: the case of Brazil. Journal of Post Keynesian Economics. London, 2021, pp. 89-111

11. Grigoryev L. M., Starodubtseva M. F. Brazil in the 21st century: A difficult path. Russian Journal of Economics. Moscow, 2021, pp. 250-268

12. Obzor luchshikh praktik v oblasti ustanovleniya trebovanij po lokalizatsii proizvodstva. Mezhdunarodnaya torgovlya i torgovaya politika. Moskva, 2016, cc.131-132. [Obzor luchshih praktik v oblasti ustanovleniya trebovanij po lokalizacii proizvodstva [Review of best practices in the field of establishing requirements for the localization of production]. Mezhdunarodnaya torgovlya i torgovaya politika. Moscow, 2016, pp. 131-132 (In Russ.)

13. Ivanchina A. A. Analiz rosta prodazh kitajskikh avtomobil'nykh brendov v Rossii za period 2019-2020 gg. Nauchnye issledovaniya ehkonomicheskogo fakul'teta. Ehlektronnyj zhurnal, 2021, t. 13, № 4, ss. 64-80. [Ivanchina A. A. Analiz rosta prodazh kitajskih avtomobil'nyh brendov v Rossii za period 2019-2020 gg. [Analysis of sales growth of Chinese car brands in Russia in 2019-2020]. Nauchnye issledovaniya ekonomicheskogo fakul'teta. Elektronnyj zhurnal. Moscow, 2021, vol. 13, N 4, pp. 64-80 (In Russ.). DOI: 10.38050/2078-3809-2021-13-4-64-80

14. Luxury Car Brands in the World, CarLogos. Available at: >>>> (accessed 15.08.2022)

15. Schelokova S. V., Vertogradov V. A. Matritsa SV: instrument strategicheskogo konkurentnogo analiza dlya otsenki urovnya dominirovaniya. Vestnik Moskovskogo Universiteta. Seriya 6. Ehkonomika. Moskva, 2021, № 6, cc. 137-142 [Shchelokova S. V., Vertogradov V. A. Matrica SV: instrument strategicheskogo konkurentnogo analiza dlya ocenki urovnya dominirovaniya [SV matrix: strategic competitive analysis tool based on the dominance level]. Vestnik Moskovskogo Universiteta. Seriya 6. Moscow, 2021, pp. 137-142 (In Russ.). DOI: 10.38050/0130010520216.7

16. Radic N., Radic V., Stevanovic M., Economy Impact of the Coronavirus Pandemic on the Automobile Industry, Oditor,DOAJ. 2020 p. 55.

17. Wang Z. et al., Redefining “masstige” luxury consumption in the post-COVID era, Journal of Business Research, Elsevier, Amsterdam. 2022 vol. 143, pp. 239-254.

18. Vertogradov V.A., Schelokova S.V., Ivanchina A.A. Avtomobil'nyj rynok RF: strategii kompanij i dejstviya regulyatorov (2009 - 2021). Strategii biznesa. Sankt-Peterburg, 2022, T. 10, № 2, ss. 33-41. [Vertogradov V. A., Shchelokova S. V., Ivanchina A. A. Avtomobil'nyj rynok RF: strategii kompanij i dejstviya regulyatorov (2009 - 2021) [Russian automotive market: Business strategies and regulators’ actions (2009-2021)]. Strategii biznesa. Saint Petersburg, 2022, Vol. 10, N 2, pp. 33-41. (In Russ.) DOI: 10.17747/2311-7184-2022-2-33-41

19. R. Linda. Methodology of concentration analysis applied to the study of industries and markets. 1976, p. 160.

20. Chang Ch. T., Ali Kh. R. M. Strategiya formirovaniya avtomobil'noj promyshlennosti v razvivayuschikhsya stranakh. Izvestiya Moskovskogo gosudarstvennogo tekhnicheskogo universiteta MAMI. Moskva. 2014, T. 5 № 4(22), ss. 42-47, [Chang C. T., Ali H. R. M. Strategiya formirovaniya avtomobil'noj promyshlennosti v razvivayushchihsya stranah]. Izvestiya Moskovskogo gosudarstvennogo tekhnicheskogo universiteta MAMI. Moscow. 2014, T. 5 № 4(22), ss. 42-47,

21. Benvenutti, L. M. M., Ribeiro, A. B., Forcellini, F. A., & Maldonado, M. U. The effectiveness of tax incentive policies in the diffusion of electric and hybrid cars in Brazil. Proceedings of the 14th Congresso Latinoamericano de Dinamica de Sistemas, São Paulo. 2016, pp. 19-21.