According to data released by the Brazilian Federation of Automobile Dealers (Fenabrave) on the 2nd local time, in November this year, the sales volume of automobiles in Brazil was 203,900, an increase of 12.78% month-on-month and an increase of 17.98% year over year.

Data show that in November this year, the sales volume of cars and light commercial vehicles in Brazil was 191,900, up 13.93% month-on-month and 19.21% year over year. Truck sales were 9,935, down 6.11% month-on-month and 5.72% year over year. Bus sales were 2,115, up 15.7% month-on-year and 55.63% year over year.

The data also showed that in the first 11 months of this year, car sales in Brazil were 1.8872 million, down 1.31% year over year. Among them, car and light commercial vehicle sales were 1.7556 million, down 1.42% year over year. Truck sales were 112,500, down 2.41% year over year. Bus sales were 19,100, up 18.39% year over year.

José Maurício Andreta Júnior, president of the Brazilian Federation of Automobile Dealers, said that this year, Brazil's light-duty electric vehicle sales have performed well, with sales of 4,995 units in November, an increase of 11.95%. Sales in the first 11 months of this year were 43,700 units, an increase of 43.5% year over year.

In the face of the upcoming 2023, where will the auto industry go?

1. Macro sales in the auto market:

At present, there are three main factors affecting the sales of new energy vehicles:

The first: is subsidy decline. In 2023, the most affected will be the A0 and A-class pure electric models in the 10-150,000 range.

Second: oil prices will continue to remain high, which will lead many consumers to consider the economics of new energy when buying cars.

Third: At present, the education of consumers has been completed. Few consumers will doubt that the battery is unsafe or affects their health.

In this context, we believe that in 2023, the entire passenger car market will continue to remain sluggish, achieving a negative growth of -5% -0%. The overall sales of new energy will be around 9 million vehicles, achieving a growth of more than 60% year over year.

The overall logic for making the above judgment is:

a. The slowdown in economic growth will directly affect automobile consumption, but it will affect the total amount, that is, the fuel vehicle market will be hit the hardest.

b. the competitiveness of new energy relative to fuel vehicles will be further increased, and the penetration rate will be further expanded.

c. Car companies have a strong willingness to develop new energy vehicles, and all car companies are tilting a lot of resources to new energy vehicles.

2. Technology Trends

It is expected that in the first half of 2023, urban navigation-assisted driving will be implemented one after another.

In the second half of the year, Tesla, Baidu, and Huawei will land. From the second half of the year, urban navigation-assisted driving functions will begin to affect consumers' purchasing decisions.

Intelligent assisted driving will enter the stage without high-precision maps, and pure visual perception routes will gradually become mainstream technical routes. Large models, big data, self-labeling, simulation, supercomputing centers, etc. will become standard, which will be a huge challenge for most car companies.

In terms of the smart cockpit, Qualcomm's 8295 chip will start to be applied next year, and 2023 will also be the first year that smart driving computing power will be applied to the smart cockpit.

AI models will be localized, which bring continuous voice conversation capabilities and response speed. With a substantial increase, the control of the car by people will also enter a new stage. Voice opening, face opening, and trunk opening will be realized. In addition, the interaction patterns in the car will be more abundant, and the interaction between AR and VR will gradually be implemented.