Skip to main content
EXTENDED SEARCH
Log in
Top
Published in:
Read chapter Read first chapter

2025 | OriginalPaper | Chapter

10. Industrial Trajectories in the Brazilian and Indian Auto Sectors

Authors : Praveen Jha, Hansjörg Herr, Bruno De Conti, Christina Teipen, Helena Gräf

Published in: Global Shifts in the Automotive Sector

Publisher: Springer Nature Switzerland

Log in

Activate our intelligent search to find suitable subject content or patents.

search-config
loading …

Abstract

The chapter explores the intricate dynamics of the automotive sectors in Brazil and India, focusing on their integration into global value chains and the impact of technological advancements, particularly the shift towards electric vehicles (EVs). It underscores the role of government policies in shaping industrial trajectories, with a particular emphasis on the creation of new comparative advantages through comprehensive industrial strategies. The analysis reveals that while both countries have experienced economic growth and technological transfers, the integration into global value chains has not been sufficient for significant catching-up with high-income countries. The chapter delves into the contrasting experiences of Brazil and India, highlighting the influence of historical economic policies, the presence of domestic lead companies, and the varying degrees of trade union power. It also examines the responses of these sectors to the COVID-19 pandemic and the potential for functional and social upgrading in the context of vehicle electrification. The comparative study of Brazil and India offers valuable insights into the complexities of industrial development in emerging market economies, shedding light on the interplay between global value chains, technological change, and national industrial policies.
AI Generated

This summary of the content was generated with the help of AI.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Business + Economics & Engineering + Technology"

Online-Abonnement

Springer Professional "Business + Economics & Engineering + Technology" gives you access to:

  • more than 102.000 books
  • more than 537 journals

from the following subject areas:

  • Automotive
  • Construction + Real Estate
  • Business IT + Informatics
  • Electrical Engineering + Electronics
  • Energy + Sustainability
  • Finance + Banking
  • Management + Leadership
  • Marketing + Sales
  • Mechanical Engineering + Materials
  • Insurance + Risk


Secure your knowledge advantage now!

inform now

Springer Professional "Engineering + Technology"

Online-Abonnement

Springer Professional "Engineering + Technology" gives you access to:

  • more than 67.000 books
  • more than 390 journals

from the following specialised fileds:

  • Automotive
  • Business IT + Informatics
  • Construction + Real Estate
  • Electrical Engineering + Electronics
  • Energy + Sustainability
  • Mechanical Engineering + Materials





 

Secure your knowledge advantage now!

inform now

Springer Professional "Business + Economics"

Online-Abonnement

Springer Professional "Business + Economics" gives you access to:

  • more than 67.000 books
  • more than 340 journals

from the following specialised fileds:

  • Construction + Real Estate
  • Business IT + Informatics
  • Finance + Banking
  • Management + Leadership
  • Marketing + Sales
  • Insurance + Risk



Secure your knowledge advantage now!

inform now
previous chapter Between Covid and Geopolitics: Emerging Production Networks in the New Energy Vehicle Industry in China
next chapter The Impact of Global Shifts in the Automotive Industry in the United States
Footnotes
1
GDP per capita in purchasing power parities and constant 2017 US dollars, which means that the figures are adjusted for price level changes and reflect real living standards.
 
2
Our case studies are based on interviews with a number of stakeholders, including industry experts, policymakers, representatives of workers and workers in this industry. The authors thank the German Research Foundation (DFG, project number 468243969, ‘Varieties of COVID-19 Reactions and Changing Modes of Globalization in the Global South’) for funding this research. Additionally, we thank the researchers collaborating in the project, especially Anne Martin and Thomas Rasmussen.
 
3
The unorganised sector consists of companies with less than 10 workers and unincorporated private enterprises owned by individuals or households engaged in the sale and production of goods and services operated on a proprietary or partnership basis. In contrast, the ‘organised’ (or ‘formal’) sector consists of enterprises with 10 workers; employment terms are fixed and regular and the employees get assured work and social security.
 
4
In addition, the ‘Proalcool’ was implemented in the 1970s to reduce the country’s dependency on oil.
 
5
Chinese companies also entered the Brazilian market during the 2010-20s (e.g. Chery and BYD).
 
6
The scheme was launched for a period of 3 years in 2019, but in light of Covid-19 was extended to 2024.
 
7
Followed by MG motors at 10%
 
8
Metal unions are historically very strong in Brazil, particularly in the metropolitan region of São Paulo (Dos Santos et al., 2022).
 
9
Market-share for cars and light commercial vehicles, Brazil (% in units). Data from MAConsulting and Fenabrave.
 
Literature
Barnes, T. (2018). Making cars in the new India: Industry, precarity and informality. Cambridge University Press.CrossRef
Cimoli, M., Dosi, G., & Stiglitz, J. E. (2009). The future of industrial policy in the new millennium: Towards a knowledge-centered development agenda. In M. Cimoli, G. Dosi, & J. E. Stiglitz (Eds.), Industrial policy and development: The political economy of capabilities accumulation (pp. 541–560). Oxford University Press. https://​doi.​org/​10.​1093/​acprof:​oso/​9780199235261.​003.​0020
Dabla-Norris, E., Kochhar, K., Ricka, F., Suphaphiphat, N., & Tsounta, E. (2015). Causes and consequences of income inequality: A global perspective. International Monetary Fund.
De Conti, B., Van Noije, P., & Welle, A. (2020). Brazilian economy: From euphoria to crisis (2003–2019). In V. Ipek & E. Akarçay (Eds.), To democratize or not? Trials and tribulations in the post-colonial world (pp. 193–231). Cambridge Scholars Publishing.
Dos Santos, A. L., Krein, J. D., Gimenez, D. M., & Dias, H. (2022). Economic and social upgrading in global value chains: The automotive industry social upgrading in global value chains in Brazil. In C. Teipen, P. Dünhaupt, H. Herr, & F. Mehl (Eds.), Economic and social upgrading in global value chains: Comparative analyses, macroeconomic effects, the role of institutions and strategies for the Global South (pp. 259–286). Palgrave Macmillan.CrossRef
Jha, P., & Kumar, D. (2022). India’s automobile and textile industries in global value networks: An assessment. In C. Teipen, P. Dünhaupt, H. Herr, & F. Mehl (Eds.), Economic and social upgrading in global value chains: Comparative analyses, macroeconomic effects, role of institutions and strategies for the Global South (pp. 197–225). Palgrave Macmillan. https://​doi.​org/​10.​1007/​978-3-030-87320-2_​8
List, F. (1841). The national system of political economy. Lippincott & Company.
Marx, R., Mello, A. M., & de Lara, F. F. (2020). The new geography of the automobile industry: Trends and challenges in Brazil. In V. A. Covarrubias, & S. M. Ramírez Perez (Eds.), New frontiers of the auto industry: Exploring geographies, technology and institutional challenges (pp. 349–376). Palgrave Macmillan. https://​doi.​org/​10.​1007/​978-3-030-18881-8_​14
Milberg, W., & Winkler, D. (2013). Outsourcing economics: Global value chains in capitalist development. Cambridge University Press.
Pardi. (2019). The role of multinational company strategies in structuring global supply chains in the automotive industry (Working Paper No. 44). International Labour Office.
Ray, S. (2022, October 14). Global value chains in autos and EVs: Experience of India [Presentation]. GERPISA seminar.
Ricardo, D. (1817). On the principles of political economy and taxation. John Murray.
Teipen, C., Dünhaupt, P., Herr, H., & Mehl, F. (Eds.) (2022). Economic and social upgrading in global value chains. Comparative analyses, macroeconomic effects, the role of institutions and strategies for the Global South. Palgrave Macmillan.
Metadata
Title
Industrial Trajectories in the Brazilian and Indian Auto Sectors
Authors
Praveen Jha
Hansjörg Herr
Bruno De Conti
Christina Teipen
Helena Gräf
Copyright Year
2025
Book
Global Shifts in the Automotive Sector

Print ISBN: 978-3-031-80640-7

Electronic ISBN: 978-3-031-80641-4

Copyright Year: 2025

DOI
https://doi.org/10.1007/978-3-031-80641-4_10

Premium Partner

    Image Credits