Fenabrave Congress Highlights the Future of Brazil's Auto Distribution

The 34th Fenabrave Congress & ExpoFenabrave kicked off in São Paulo on August 17, gathering key players in Brazil's auto distribution sector. The event, which began with institutional meetings and the traditional Avant Première, highlights the federation's role in representing over 8,500 concessionaires across 951 municipalities, contributing significantly to the country's GDP.

## Fenabrave's Historical Role and Legal Milestones

Fenabrave, originally founded as Abrave in 1965 and later renamed in 1989, has played a pivotal role in shaping Brazil's auto industry. One of its most notable achievements was the enactment of Lei nº 6.729/1979, known as the Lei Ferrari, which regulates the relationship between manufacturers and distributors. Despite calls for its revogation in the 1990s, the law was preserved and later reformed by Lei nº 8.132/1990, with Fenabrave playing a crucial role in the process.

The federation has also been instrumental in various industry initiatives, including the popular car project, where concessionaires sacrificed 2.5% of their margins to boost sales. Fenabrave has consistently advocated for a balanced relationship between manufacturers and dealers, engaging with government bodies and regulatory agencies. Recently, the Supreme Federal Court upheld the constitutional validity of the Lei Ferrari, reinforcing its importance in the industry.

## Adapting to Industry Changes

While the Lei Ferrari provides essential safeguards, the auto industry is undergoing significant transformations. Consumers now shop online, compare prices instantly, and demand more from their purchasing experience. New brands are entering the market, and manufacturers are exploring different customer engagement strategies. However, the need for physical and human infrastructure remains, as concessionaires continue to handle deliveries, financing, used car sales, technology explanations, warranty services, and diagnostics.

Fenabrave faces the challenge of balancing tradition with innovation. The federation must foster collaboration between established manufacturers, new entrants, and concessionaires while addressing issues such as profitability, digitalization, direct sales, electrification, technical qualification, and business succession. The goal is to modernize the distribution model without disrupting the equilibrium that has taken decades to build.

## Looking Ahead

As the congress continues through August 18 and 19, the focus will be on how Fenabrave navigates these challenges. The event will feature discussions on the future of auto distribution, with an emphasis on maintaining the industry's stability while embracing necessary changes. The federation's ability to distinguish between what needs to evolve and what must be preserved will be crucial in shaping the future of Brazil's auto sector.