The Brazilian Dealer of Tomorrow

ICDP

Publication Number: Special Report

Author: ICDP

Date: October 26, 2017

Tags: New vehicles, Used vehicles, Parts, Aftersales, Automotive regulation, Dealers, Channel strategy, Customer insight, Mobility trends

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ICDP was commissioned by Fenabrave, the Brazilian Dealer Association, to look at three key questions facing the Brazilian Market:

  • How will global automotive megatrends impact Brazil?
  • What is the role of the Brazilian dealer for cars and light trucks in 2025?
  • What actions do dealers need to take to secure their place in the future?

A key concern is global megatrends, and how those might disrupt the dealer in the coming years.  Fenabrave and their members wanted to understand what the role is for dealers in 2025, and what actions they should be taking now to prepare for that.

In order to answer these questions, with our local partner Francisco Trivellato and his colleagues at Trivellato Informações & Estratégias, ICDP has drawn on data and insights from four sources:

  • We conducted desk research to capture a wide range of reports and surveys related to the Brazilian car and light truck market and the dealer world in particular. 
  • We had financial and other data that was provided to us on a confidential basis by Fenabrave and their member brand associations. 
  • We conducted face to face interviews with almost 30 individuals including dealer group investors and CEOs, senior network executives from the OEMs, and players in the digital market. 
  • Finally, we conducted an online survey with 119 investors, representing around a sixth of the active dealerships in Brazil.

Our research found that many dealers and OEMs believe that the legacy of the recent recession must be addressed first before attention can be turned to future needs, but we believe that this must be done with a view to future needs as well – what we call “changing the wheels whilst driving along”.  We conclude that there is a future for the dealer model, but to survive, dealers will need sufficient scale to add new skills and capabilities, particularly around digital, and to manage what will be a more complex business in a more process-driven way.  OEMs and the dealer associations should support this transition.

The results of our research were presented at the annual Fenabrave Congress in São Paulo on 9th August by Dr Andrew Tongue, Research Director ICDP.

Please download the report by following the link on the right, or follow this LINK to obtain a version in Portuguese.