Investments of up to $11.2 billion will enter Brazil over the next two years, according to Cledorvino Bellini, the president of industry group Anfavea. Bellini said that investments will come from global automakers such as Ford Motor. Co. that want to exploit the car demand in Brazil, which has the largest Latin American economy.
Carmakers such as Ford, Italy's Fiat S.p.A. and Germany's Volkswagen AG, are believed to consider sales in Brazil, the world's fifth-largest auto market by sales, to be crucial.
Last month, Ford CEO Alan Mulally said that Ford will raise funding for Ford Brazil to $2.4 billion from $2.2 billion from 2011 to 2015.
April car sales for Brazil are predicted to reach a record for the month, emphasizing the significance of domestic demand to Brazil's economic rebound.
Last Friday, Anfavea said that sales of new vehicles in Brazil totaled 261,063 until last Thursday. The previous month, the company sold 299,368 units.
The April figures show a 20.3% rise over the year-ago period. At an event in Sao Paulo, Bellini, the head of Fiat's Latin American operations, said that expansion plans follow an "extremely positive 2009 in Brazil."
In 2009, Fiat sold more cars and light commercial vehicles in Brazil (737,000) than in its Italian home market (722,000). This marks the first time that Italy dropped to No. 2 for Fiat in the carmaker's 111-year history.