Brazil has the fourth largest car market in the world. More than 3.3 million new cars were sold in Brazil in 2014. There are only three countries that sell more cars than Brazil, and they are China, Japan and the United States. That number doesn’t include the used car market. More than 13.3 million used cars were sold in 2014, according to the National Federation of Automotive Vehicle Resellers. It is important to note that Brazilian advertising plays a major role in car sales.
Advertising firms like Heads Advertising, under the guidance of Cláudio Loureiro, is very active in automobile advertising. In fact, one of Heads largest clients is Petrobras, the largest gas company in Brazil, so the company has a close connection with the automotive world. Most of the cars sold in Brazil are sold through dealers, and those dealers do an enormous amount of advertising. Internet sales are reserved for a few manufacturers who were pioneers in e-commerce automobile advertising and sales. Car buyers do use the internet as an information source, so e-commerce automobile ads do influence car sales in both new and used dealerships.
The interesting fact about car sales in Brazil is the Southern region of the country, and Southeast region account for 76 percent of the cars purchased in Brazil. Most of the buyers in the South are between the ages of 30 and 60 and they reside in the suburbs of the big cities like Porto Allegro. That age group accounts for more than 40 percent of the auto buyers in the entire country. Business owners only represent 12.6 percent of car buyers, but independent and middle-class professionals only account for 24.2 percent of the cars sold every year.
Ad agencies that focus on advertising automobile accessories have a very fertile market in terms of the amount of money spent on auto gadgets. A recent report from a Brazilian consulting agency shows that the total accessory market is more than R$20 billion a year, and about $2 billion of that total is sales on sound equipment and other accessories. Comfort, security items, along with rims, GPS devices and multimedia equipment are also heavily advertised products in all media platforms in Brazil.