A snapshot of the land transportation sector and expectations for 2023

Balcão Automotivo details a TCP Partners study of land transportation: about 134,000 companies, 1.1 million jobs and estimated net revenue of R$307 billion in 2021. For 2023 the study projected growth of 1% to 1.5%, which Ricardo Jacomassi, TCP partner and chief economist, put at practically double GDP growth, driven by a record harvest and express deliveries. He pointed to challenges such as working-capital costs of 15%–20%, higher parts prices, uncertainty over diesel and the switch from Euro 6 to Euro 7 engines. As trends, he cited digitalization, mergers and acquisitions, professionalization of family firms and fleet renewal.