According to Market Analytics data from SiiLA for the second quarter of this year, the automotive industry currently occupies 1.1 million square meters in logistics facilities across the country, representing a 43% increase compared to the same period in 2018.

Among the automakers, Ford stands out, occupying 95,300 square meters; Mercedes-Benz, 83,000 square meters; Renault Nissan, 68,700 square meters; General Motors, 41,900 square meters; and CAOA Chery, 26,100 square meters (see the complete ranking below).

As one might imagine, storing vehicles requires large logistics areas, whether in warehouses leased by companies in the sector or by the manufacturers themselves, who often use their own lots to store vehicles. Additionally, these "warehouses" must have a high level of security to prevent theft or damage.

"Maintaining vehicles in proper environmental conditions and protecting them from weather and climate changes is essential for their upkeep," says Campos from AGL Cargo.

He also advises the use of advanced logistics management technologies, such as tracking systems and warehouse automation, to improve efficiency and reduce errors. Additionally, it is crucial to train logistics professionals in the specific requirements of the automotive sector.

"Collaboration with the government and other entities on transportation infrastructure helps reduce logistical bottlenecks," he adds.

For car importers, whether they are companies in this segment or manufacturers entering the Brazilian market—such as the Chinese automakers—one of the most important factors for effective logistics is the proximity of yards and storage facilities.

"When it comes to fully assembled vehicles (CBU – complete built up), Brazil has good port infrastructure for receiving vehicles, along with nearby yards for use by vehicle-importing automakers," says David Wong, director of corporate transformation at Alvarez & Marsal.

The global consulting firm has automotive industry clients in its portfolio but cannot disclose their names due to confidentiality agreements.

For Chinese automakers, the challenge may be even greater. According to Wong, the average time from shipping vehicles from China to their arrival at automakers' yards ranges from 35 to 45 days. To save time, these manufacturers can move vehicles to bonded yards immediately after they arrive at the port. This allows them to complete customs clearance only after the sale to the dealership is finalized, thereby delaying the payment of taxes associated with the importation of fully assembled vehicles.

"The average time a vehicle remains in the automakers' yards depends on many variables, including shipping frequency, the size of shiploads, and sales pace in the domestic market. The traditional goal is to maintain an average stock of about 15 to 20 days within the automakers' control," Wong explains.

Wong also emphasizes the need to consider the ongoing transformation of the automotive sector, particularly with the implementation of the MOVER program launched by the Federal Government in June. The new industrial policy for mobility aims to encourage investment in new technological pathways and increases requirements for decarbonizing Brazil's automotive fleet.

"Local and Mercosur products will increasingly be hybrid or electric. These products will require some imported components that are not yet produced in Brazil and perhaps never will be. Import logistics for these components will need to increase until the national industry begins production, which will affect costs in the meantime," Wong notes.

In light of this new reality, Wong stresses that it will be necessary to not only localize components but also prepare for the increased logistical demands to mitigate impacts on the final costs of products.