Market Research and SWOT Analysis for Fibers Composite Materials Usage in the Vehicular Components Supply Chain

ABSTRACT

Sustainability has become a global priority in recent years. The performance of companies in the market is directly influenced by their actions and the way they relate to consumers, who are increasingly looking for less environmentally aggressive products. The concept of ESG encompasses this concern with climate and environmental factors, while at the same time looking at the feasibility and operationalization of new practices. This is especially true in manufacturing sectors, such as the automotive sector, which is the subject of this study. Given the scarcity of information on who is involved in the production chain of automotive components and the possibility of production from more sustainable materials (such as the use of natural fibers), this work seeks to elucidate the gaps and opportunities for a new conception of automotive components, specifically in Brazil. Evaluating political, economic, social, technological, environmental, and legal aspects, and summarizing the data in a SWOT matrix, it identifies that the Brazilian automotive components production chain, despite its low technological level to absorb innovations, has opportunities for gains in technology development, alignment with global sustainable practices, increased competitiveness worldwide, and market positioning.

摘要

近年来，可持续发展已成为全球优先事项. 公司在市场上的表现直接受到其行为及其与消费者关系的影响，消费者越来越多地寻找不太环保的产品. ESG的概念包括对气候和环境因素的关注，同时考虑新做法的可行性和可操作性. 这在制造业尤其如此，比如汽车行业，这是本研究的主题. 鉴于缺乏关于谁参与汽车零部件生产链的信息，以及使用更可持续的材料（如使用天然纤维）生产的可能性，这项工作试图阐明汽车零部件新概念的差距和机遇，特别是在巴西. 评估政治、经济、社会、技术、环境和法律方面，并在SWOT矩阵中总结数据，它确定，尽管巴西汽车零部件生产链吸收创新的技术水平较低，但仍有机会在技术开发、与全球可持续做法保持一致、提高全球竞争力和市场定位方面取得进展.

KEYWORDS:

• Sustainability
• natural fibers
• innovation
• bioeconomy

关键词:

• 持续性
• 天然纤维
• 创造
• 生物经济

Introduction

The business sector has been the target of several modifications due to growing competition in terms of cost, quality, reliability, and agility, mainly due to environmental and social factors. The ESG (environmental, social, and governance) approach is responsible for orienting a company’s position when it comes to external factors and increasingly guides a company’s actions, resulting in improvements in its positioning in both the internal and external markets (Rede Brasil 2023). Concerns related to this matter have been increasing. Even among the companies listed on the S&P 500, which is widely considered as a highly reliable indicator for large-cap U.S. stocks and includes 500 leading companies representing approximately 80% of the available market capitalization (S&P Dow Jones Indices n.d.), there are published reports, with more than 90% sharing experiences on ESG scope (Pérez et al. 2022). The increased value of a company and its ESG goals achievements in several economic sectors, such as tourism, pharmaceuticals, and energy, have demonstrated a positive correlation. Still, some other sectors, such as the automotive industry, lack data and studies on this tendency for the general industry and its performance (Dincă, Vezeteu, and Dincă 2022).

Sectors with the best indicators of sustainable development are precisely those that have higher resource allocation rates in innovation, which is a crucial element for achieving global goals such as the 2030 Agenda for Sustainable Development (Chaparro-Banegas et al. 2023). Innovation in the sustainability field emerges as an alternative for companies seeking synergy between economic growth and environmental preservation, becoming a new key resource to increase competitiveness. Innovating in this field may translate into changes in product attributes, processes, and supply chain configurations (Calazans and Silva 2016).

The automotive sector holds a large share of the national business structure. Data released in the Brazilian Automobile Industry Annuary by the National Vehicle Manufacturers Association (Anfavea) show that in 2022, 2,380,161 vehicles were produced in the country, including passenger cars, light commercial vehicles, trucks, and buses. According to the latest report on this matter released in 2021 from the National Intellectual Property Institute (INPI) – Brazil’s government agency responsible for intellectual property affairs – the Brazilian automotive industry invested more than 125 billion dollars in innovation in 2018 alone, with a significant portion of these resources coming from automotive companies. This data highlights innovation as a major priority for these companies, while also indicating substantial potential for the use of composite materials. In fact, within the research and development investments in the sector, there is a notable emphasis on the exploration of light and advanced materials, particularly biobased materials (Santos and Villa Verde 2021).

Still, according to Anfavea (2023), one of the main agendas is the decarbonization of this sector. It is relevant to mention that CO₂ emissions are not only related to combustible fossil consumption; it is also essential to account for CO₂ emissions throughout the entire production chain, such as in the materials utilized in the industry and in waste management actions. According to Johansson (2002), ecodesign is an approach for proactive environmental management, aiming at environmental responsibility and production development process integration. This integration leads to materials with enhanced environmental performance throughout their life cycle without compromising other critical criteria, such as quality, cost, functionality, and aesthetics. Seeking to encourage sustainability in its sector, in its 2030 Route Program report, published in 2020, the National Automotive Vehicle Component Industry Syndicate (Sindipeças) defined three fundamental pillars to be developed. Those pillars are energetic efficiency, tax benefits for research, and development and innovation aligned with the prioritization of projects that may promote better technological performance of the production chain.

Vehicle components such as instrument panels, bumpers, and internal lining are made of polymeric materials from petroleum refining. Parallelly, there is a global trend of reduced plastic utilization. Despite increasing plastic consumption in recent years, the search for less harmful substitutes with lower environmental impacts throughout the product life cycle has been targeted on several research fronts (Atiwesh et al. 2021).

An increase has been observed in the development of composites (materials composed of at least two distinct phases to achieve a final product with enhanced properties), seeking a reduction in the intensive usage of fossil resources and simultaneously achieving superior mechanical properties (Dias et al. 2017). Biomass-reinforced polymeric matrices have been reported by several researchers, who have verified lower environmental impacts in the product life cycle and enhancements in their mechanical properties. Weight reduction has also been a remarkable particularity of such a class of materials, highly promising once it is related to lower combustible consumption and, thus, lower CO₂ emissions (Roy et al. 2019; Tadele et al. 2020). A biomass fraction commonly incorporated into polymers are vegetal fibers, such as bamboo fibers, sisal fibers, coir, eucalyptus fibers, jute fibers, abaca fibers, and sugarcane fibers, among others (Atiwesh et al. 2021). Once these fibers are obtained as common residues from other agro-industrial processes, circular economies emerge as a concept that associates economic development and better natural resources management by promoting new business models and optimization of the manufacturing process with lower dependence on virgin raw materials, thus prioritizing long-lasting, recyclable, and renewable resources.

Although the use of composite materials by different industrial sectors is common, the use of these components by the Brazilian automotive industry has been recent. The adoption of new materials by a manufacturing sector such as the automotive industry lacks a technical approach that identifies gaps and can assess the risks of a change in the design of automotive components, which, at a conceptual and pragmatic level, provides information that can guide decision-making in this production chain. The lack of correlation between the possible gains of a corporate positioning that encompasses ESG strategies and the automotive industry’s manufacturing processes also proves to be lacking in information.

This work seeks to identify and evaluate the viability of all the interconnected entities necessary for the design of composite materials by the Brazilian automotive industry and their use in vehicle components. The purpose of this study was not to evaluate quantitative financial data or the mechanical properties of the materials, but rather to carry out methodological research at a national level to identify the key points necessary for large-scale production of automotive components using composite materials and to identify the possible risks associated with a new form of manufacturing.

Therefore, the specific objective of this work is to evaluate the market potential for the production and use of vehicle components by the Brazilian automotive sector, revealing the sector’s ability to produce composites reinforced with natural fibers as an alternative to fossil-based materials.

Materials and methods

The study methodology consisted of performing a market analysis on the production chain of vehicle components. The analysis was developed in two steps. First, an external factors analysis was performed, reuniting aspects such as political-legal aspects, economic-natural aspects, technological-sectorial aspects, socio-economic aspects, and cultural aspects, emphasizing elements that have been a driving force and conditioned strategies of automotive industries.

The second part was a SWOT analysis (Strengths, Weaknesses, Threats, and Opportunities). This analysis presumes the identification of strengths and weaknesses of the internal environment, in other words, specific characteristics of the technology or business model, which are conditions under the control of the decision-makers. On the other hand, the opportunities and threats analysis consist of studying the external environment, such as conditions dictated by the market or economy, and are beyond the control of the decision-makers (Ghazinoory, Abdi, and Azadegan-Mehr 2011; Weihrich 1982). Once the four pillars of SWOT analysis are identified, a matrix that can visually represent each identified element is created. It is time to plan competitive, technological, and investment strategies, reuniting resources to make the best decisions (Nakagawa 2023).

An environmental diagnosis is essential for strategy planning, allowing for higher knowledge of the current situation and future perspectives and risks, while also contributing to the organization and systematization of strategies in decision-making. According to Souza et al. (2013), SWOT analyses have been successfully used as a strategic planning tool for researchers and manufacturers to approach complex situations since it leads to less, but more relevant information for decision-making moments.

For the internal and external analyses and consequent creation of a SWOT analysis, scientific literature, regulations, and specific legislation were studied, on top of reports and sectorial studies from institutions such as INPI, Anfavea, and ADIRPLAST (Brazilian Plastic Resins and Correlates Distributors Association). In addition to information collected from those institutions, the analysis relied on the expertise of researchers in the material technology field enrolled at the RESIDUALL laboratory from the School of Agriculture at São Paulo State University.

Results

For better data presentation, the general aspects studied are summarized in Table 1. A deeper discussion of each aspect is registered after the table.

Table

Aspects	Relevant information	Advantages	Disadvantages
Political-legal aspects	The Global Pact launched in 2000 is a significant sustainability initiative with 16,000+ participants worldwide, promoting the Sustainable Development Goals (SDGs). Federal law 13,744 of 2018 established criteria for vehicle commercialization, promoting technological development of the sector and offering tax reductions. 37 entities, including Sindipeças, participate in general discussions on policies in the Brazilian automotive industry. Law 12,305 of 2010 promotes sustainable production and consumption, encourages the use of eco-friendly materials, and aims for waste reduction and pollution control. The National Solid Waste Policy encourages a circular economy in Brazil. Rising sustainability demands influence public policies. Câmara Setorial de Fibras Naturais (CSFN) aims to unify the fibers sector.	Competitive advantages are granted by governments for companies adhering to the Global Pact. Tax reduction incentives under federal law 13,744 aim to promote innovation and sustainability. Pronampe aims to integrate production chains and consolidate the automotive industry. CSFN is focused on helping projects toward developing the natural fibers sector. There is an increased focus on eco-friendly materials aligned with global sustainability trends. Public policies are responding to rising sustainability demands from the public.	Some breaches and divergencies between policies are observed globally. Constant updates to policies and in the state of the art may constitute challenges. There are challenges in regulating and investing in poorly structured fiber chains. Some fiber production chains are associated with high risks, informality, and low technological levels. High investments toward sustainability and innovation may be necessary in the sector.
Natural-Economic aspects	Synthetic polymers, like PE, PS, PVC, and PET, are associated with environmental issues due to slow degradation and are mostly obtained from petroleum. PE production from renewable sources, such as sugarcane, is increasing. Biodegradable polymers such as PLA, obtained from natural starch, are perceived as greener alternatives. ADIRPLAST reported a 7.5% increase in distributed resin commodities, engineering plastics, and bio-oriented films in 2022 in Brazil. A life cycle assessment (LCA) reveals significant carbon footprints for polymers like PP, PE, and PET. Fibers such as jute, hemp, and flax present lower CO2 emissions. The automotive industry is accountable for 14% of global greenhouse gas emissions.	Growth in PE production from renewable sources reflects increased concerns about conscious consumption. Lower environmental impacts are observed in composites with biological matrices. LCA is a powerful tool for identifying environmental impacts, encouraging sustainable material choices. The use of natural fibers such as jute and hemp in manufacturing contributes to lower CO2 emissions. Composite materials provide advantages like weight reduction, fuel efficiency, and lower CO2 emissions in vehicles.	Biodegradability varies among polymers, and their impact depends on usage, even with greener materials. Not all biologically originated matrices result in significantly higher degradation rates. Certain criteria for vehicle component development may imply limited material choices. Environmental and economic gains are usually dependent on achieving economies of scale and efficient raw material utilization.
Socio-economic and cultural aspects	Customer awareness of sustainability drives market regulation policies. Customers tend to prefer goods with lower environmental impacts. Companies in the 2030 Route Program can reduce several federal taxes by up to 30% upon meeting certain requirements. Taxes currently account for 24.3% of vehicle prices in Brazil. Sustainability goals impact a company’s market performance. Actions in line with the ESG system (Environmental, Social, and Governance) influence market positioning and public perception of the brand.	There is a growing customer preference for environmentally friendly goods. Historical growth in composite material consumption suggests the potential for market expansion. Tax deductions according to law 13,755 incentivize research and development aligned with environmental goals. Increased competitiveness is possible through tax deductions. Alignment with the ESG system enhances a company’s market position.	Strict requirements for tax deductions may lead to challenges for companies. Implementation challenges may arise when changing material composition.
Sectorial-technological aspects	Small and micro-enterprises face greater challenges in adopting innovations since their research and development activities are usually not prominent. The Brazilian automotive sector includes 26 multinational companies with 57 industrial units producing vehicles, machinery, engines, and components. In 2022, 2.3 million vehicles were produced, with 1.8 million being passenger cars. Customer pressure for pollution reduction drives changes in the business model. Natural fiber-reinforced materials present satisfactory mechanical properties, low density, high stability, good impact absorbance, and environmentally friendly life cycles. Despite variations in cultivation and processing, natural fiber-reinforced materials present better properties when compared to conventional materials. The vehicle components sector registered 17,555 patent requests between 2010 and 2020, with a focus on wheels, tires, and electric devices.	Research and development focused on sustainable materials is aligned with global tendencies. The high number of patent requests reflects a commitment to innovation in the sector. Small enterprises benefit from investing in research and development. Overcoming challenges in adopting and developing innovations is usually associated with market leadership. Natural fiber-reinforced materials offer positive mechanical and environmental properties for several applications.	Small and micro-enterprises may face challenges in adopting innovations. Late adoption of digital tools may impact efficiency and competitiveness. Adapting to customer demands may translate into significant changes in manufacturing processes. Variations in natural fiber cultivation and processing might be one of the greatest challenges when developing new materials with consistent properties.

Political-legal aspects

2030 Agenda and incentive laws

Launched in 2000, the Global Pact is currently the largest cooperative sustainability initiative in the world, with more than 16,000 participants among enterprises and organizations. The network is distributed in 70 local hubs that cover 160 countries. Their members assume the responsibility of contributing to reaching the Sustainable Development Goals (SDGs). As the UN’s main canal with a private initiative, the Global Pact has the mission of engaging companies in this new development agenda. Actions for industry stand out among the 17 SDGs: innovation, infrastructure, and responsible production and consumption incentives. These actions focus on promoting sustainable industrialization, achieving efficient use and management of natural resources, and substantially reducing waste generation through prevention, reduction, recycling, and reuse. Companies that promise themselves to adhere to the Global Pact may also obtain certain competitive advantages in their niches. Sustainability allied to innovation and investigation constitutes a powerful differentiation tool, which has turned this subject into a strategic priority for any organization that intends to occupy a sustainable position in the long term.

In 2018, federal law 13,744 established mandatory criteria for vehicle commercialization in Brazil and created the “2030 Route – Mobility and Logistics” plan to support technological development, competitiveness, innovation, vehicle security, environmental protection, energetic efficiency, and vehicle component quality. Among the established guidelines are an increase in research and innovation and the promotion of new technology production. As an incentive to the program, a tax reduction is established proportional to the total investment in projects aligned with those objectives. Even though some breaches between this policy and other policies have been observed across the globe (Pelegrina, Stoeber, and Fouto 2022), the program continues to be constantly updated, which may favor a better alignment with the rest of the world. The relation between production indicators and a tax aliquot reduction has been observed in periods before the program, demonstrating that this tool might be effective for both sector development and the country as a whole regarding investment directed toward innovation and sustainability. It may also constitute an opportunity for production chain reconfiguration (De Lima, Dias, and Jacques 2022).

According to Anfavea (2023), there are 37 entities responsible for accompanying and intervening in elaborating guidelines for the Brazilian automotive industry; among them, Sindipeças is directly responsible for policies for the vehicle component manufacturers. The association, comprising 500 associates of national and international capital working on developing and strengthening the sector, provides for all Brazilian assemblers and the replacement market. The entity helps its associates with services driven by four principles of action: an industry growing stimulus, information and capacitation, representation, industry defense, and associativism.

In 2020, executive order 10,493 was published, discussing implementing National Support to Micro- and Small-sized Enterprises (Pronampe, in Portuguese). This executive order predicts the integration of production chains, including vehicle components from MERCOSUL, aiming to reach an effective integration and consolidate the automotive industry (Brazil). It is possible to notice that, in the political field, recent policies have tried to strengthen the vehicle components sector, make production costs viable, and integrate the Brazilian automotive market with global tendencies.

National solid waste policy and the natural fibers sector

Among the principles and goals of law 12,305 from 2010, the goal entitled “Política Nacional de Resíduos Sólidos,” or the National Solid Waste Policy, singles out the promotion of sustainable production and consumption of goods and services standards adoption. Furthermore, it creates incentives to utilize raw materials that are less aggressive to the environment and to reduce solid waste production, waste of materials, and pollution and environmental damages. Scholz Karl and Karl (2022) defined Brazil as a unique market, with vast natural capital and an attractive scenario for transitioning to a circular economy. Brazil’s regulations have been directed toward a more conscious approach to solid waste generation. The country seeks to achieve a shared economy through public policies, perceiving the potential of developing a solid market from waste management. Thus, the NSWP may be perceived as a way to consolidate and make it easier to achieve a circular economy once its attendance is mandatory.

The guidelines for Brazil’s public policies have been influenced by rising sustainability demands from both the public and the industrial sector. Once the use new materials has been growing in several sectors, many of them have been shifting toward the development of technologies that could lead to lower costs and thus lower prices for the consumers, resulting in more competitiveness on a global scale (Carbonell et al. 2021). The Câmara Setorial de Fibras Naturais (CSFN) or Sectorial Committee for Natural Fibers, is an organ associated with the Ministério da Agricultura e Pecuária (MAPA), Brazil’s Ministry of Agriculture and Livestock, responsible for constantly developing action plans seeking the unification of the fibers sector in the country. In 2019, a panorama of the current situation at that moment was published, with the aim of understanding some of the fragilities and opportunities in this sector and properly elaborating new public policies. This document revealed that productive chains of fibers such as malva, silk, bamboo, sisal, piassava, and coir were usually poorly regulated and also in need of higher investments, high risks for innovation, high rates of informality when it comes to commercial transactions, and low technological levels of production. On the other hand, the increasing demand for sustainable goods might represent an incentive for the development of natural fiber-reinforced composites, and thus for local fiber producers, once it is a market with fast returns on investments, low costs of production, and capable of establishing partnerships with private companies.

Natural-economic aspects

Polymeric matrices and biodegradability

Synthetic polymer production is directly related to several environmental issues because these materials present a chemical structure that is not easily degraded by natural microorganisms. This property leads to a low rate of degradation, which may still constitute polluting hazards for soil and water bodies and affect biodiversity. Specific plastic properties are related to the chemical nature. Some examples are polyethylene (PE), which may be presented in high density (HDPE) or low density (LDPE), polystyrene (PS), polyvinyl chloride (PVC), polypropylene (PP), and polyethylene terephthalate (PET), among others. Despite a rise in new technologies for greener production of some of these polymers, most are still obtained from petroleum. However, PE production from renewable sources, such as sugarcane, has presented consistent annual growth, reflecting the industry’s and society’s concerns about conscious consumption (Braskem 2023).

Some polymers also present biodegradable properties due to their production methods, such as polylactic acid (PLA) obtained from natural starch (Shanmugam et al. 2021).

Different polymers may present different degradation periods, but it is known that those of biological origin present continuous and rapid degradation when compared to synthetic ones (Aigaje, Riofrio, and Baykara 2023). Composites with a PLA matrix, for example, showed high weight loss over time, which is attributed to the high biomass content in the composite (Nandi and Das 2023). Regarding composite materials, a biological-originated polymeric matrix may, but does not necessarily, result in higher degradation rates and consequently reduced environmental impact after consumption.

Natural resources and climate change

According to ADIRPLAST, in the first semester of 2022, the total amount of distributed resin commodities, engineering plastics, and bio-oriented films was about 140 thousand tons, surpassing the previous period by 7.5%. Only PS and PP presented an increase of 28% and 5%, respectively.

A life cycle assessment (LCA) is a technique capable of indicating possible environmental impacts related to a product or a process, from raw material extraction until its disposal after consumption. GWP (Global Warming Potential) is one of the indices considered in the life cycle assessment. Polluting gas emissions are a significant factor in extracting and manufacturing polymers (Kamalakkannan et al. 2022). While assessing PP, PE, and PET production, Goga et al. (2022) concluded that the carbon footprint goes up to 17.4 Mt CO_2eq depending on the characteristics of the raw material extraction process and the energy source used. At the same time, fibers such as jute, hemp, and flax produce 0.5–0.7 t CO_2eq throughout their processes (Das et al. 2022).

The automotive industry is accountable for approximately 14% of the total global emissions of greenhouse gases, up to 7.5 Gt CO_2eq worldwide. 4.7 Gt are related to light vehicle usage, 1.4 Gt are associated with combustible production, and 1.4 Gt are related to vehicle production, including components and raw materials (Hertwich et al. 2021).

Data from ADIRPLAST show that the total amount of plastic present in some of the Brazilian cars is approximately 130 kg, according to the type of polymer used (PP, PE, and PVC, among others), and that there are some criteria for vehicle component development, such as material performance at high temperatures, mechanical resistance, and corrosion resistance. In 2021, the automotive industry and its components sector consumed 6.2% of manufactured medium-range life cycle (1 to 5 years) plastics produced in the country, representing Brazil’s fourth largest sector for plastic consumption, with 6.7 million tons produced (Abiplast 2023).

Composite materials emerged as an alternative to fossil-obtained plastics. Duarte et al. (2021) state some of the advantages of the diversification of polymers used in vehicle components, such as weight reduction and, consequently, combustible use reduction and CO₂ emission reduction. By reducing a vehicle’s weight by 10%, the combustible efficiency is increased up to 7%. Therefore, it is possible to develop new materials with lower carbon footprints at the same time that a circular economy is encouraged, once biomass sources are usually residues from other industrial or agricultural processes (Das et al. 2022). In many cases, the environmental gains from material manufacturing are related to economies of scale, and they are the definition of processes that achieve higher degrees of efficiency when it comes to raw material utilization.

Socio-economic and cultural aspects

Awareness of customers’ expectations related to sustainability has been a driving force for market regulation policies. Customers are increasingly more prone to buying goods with lower environmental impacts. Despite the limited information about composite materials and their properties, the consumption of this class of materials has been showing a long term tendency for growth (Ruf, Emberger-Klein, and Menrad 2022). Global trends toward goods and processes with less severe environmental impact directly dictate economic relationships, investments, technological development, and enterprise research networks (Volchik, Maslyukova, and Strielkowski 2023).

The 13,755 law opens a new range of possibilities for companies enrolled in the 2030 Route Program to reduce various modalities of federal taxes by up to 30% once the requirements are met. The deducted verb is invested in research and development of production chains aligned to environmental protection goals and energetic efficiency. Currently, taxes correspond to 24.3% of vehicle prices in Brazil (Anfavea 2023). Changes in the tax regime of vehicle components are essential once they make the sector’s technological development feasible and allow for higher competitiveness.

These goals, aligned with sustainability strategies, are related to a company’s performance on the market. A business positioning against its competitors is influenced by actions toward the ESG system, which promotes a balance between social and environmental impacts and the activities of a company (Jung and Yoo 2023). Changing the material composition of components manufactured for the automotive industry might translate into a reduction in social and environmental impacts beyond a reduction in combustible consumption by vehicles. It also results in fewer polluting gas emissions, meeting the future requirements of an increasingly restricted sector (Roy et al. 2019).

Sectorial-technological aspects

Technological advances and changes in productive processes are linked to creating new business models and changing consumption habits. Absorbing these innovations might be a challenge for small and micro-enterprises, depending on how immersed they are in intensive research and development sectors and their level of integration in manufacturing processes. Industry-related companies have increasingly focused on tools such as big data and analytics besides process digitalization. However, it is still an issue that needs to be overcome when it comes to the automotive sector and its component providers (CNI 2023).

The Brazilian automotive sector comprises 26 multinational companies that represent 57 industrial unities responsible for manufacturing vehicles, agricultural and road machinery, engines, and other goods, in addition to 473 manufacturers of vehicle components. From 2.3 million vehicles produced in 2022, 1,824,833 were passenger cars (Anuário da indústria automotiva brasileira 2023). This sector has presented several changes in its business model, and one of the main factors has been the customers’ pressure for pollution reduction and more adequate environmental management. Among the automotive industry’s research and development activities, seeking light and advanced materials has contributed to a more sustainable production chain. Between 2010 and 2020, the vehicle components sector registered 17,555 patent requests in the country, reflecting an intense focus on innovation; however, most of the requests were related to wheels, tires, and electric devices (Inpi 2021). The small parcel of materials-related patents may indicate a gap that needs to be addressed once society shows a growing tendency toward sustainable materials, besides recent advances that have been reported when comparing natural fiber-reinforced materials with conventional ones.

When it comes to natural fiber-reinforced materials, despite natural fibers’ high variation related to their cultivation and processing, it was demonstrated that natural fibers present satisfactory mechanical properties, low density, high stability, good impact absorbance properties, and a less environmentally aggressive life cycle (Dias et al. 2016; Fogorasi and Barbu 2017; Marichelvam, Kandakodeeswaran, and Geetha 2022).

Swot analysis

Aspects previously discussed showed a potential market for vehicle components produced from natural fiber-reinforced materials in Brazil. Environment analysis reunited aspects that constitute good opportunities, such as innovations related to these components’ potential efficiency gains on vehicle combustible consumption. Other aspects may be seen as challenges and difficulties to be overcome, such as in the very own technology development and lack of basic information like available information on materials after consumption. At the same time, there are some peculiar characteristics of the state of the art of natural fiber composites, such as a high potential for integration in a circular economy and incentives like tax discounts, but with some weaknesses, such as low a technological level available for material development and its use by the automotive industry.

These aspects were reunited in a SWOT matrix (Figure 1) for better analysis and discussion.

Figure 1. SWOT matrix.

The SWOT matrix allowed for a better understanding of where vehicle and vehicle components are placed in the current scenario, as well as allowing some possible actions.

One strategy for benefiting from a favorable regulatory environment, which favors innovation and rewards investments, is to keep the company’s guidelines aligned with goals defined by legislation. Financing research and development of new materials promotes competitiveness and sustainability and, at the same time is a feasible way of being eligible for tax benefits. The strategy adopted by the Brazilian government to reduce interest rates in return for investments in innovation and technology is fundamental to the transition to a greener economy. Recent studies show that, in the G7 countries (the name given to a group of countries with some of the highest levels of industrialization in the world), there is a correlation between reducing interest rates and technological innovation, which is an important factor that must be associated with other actions, such as the use of renewable energies and international cooperation in the search for sustainability (Onwe et al. 2023).

The demand from the automotive sector and society for goods with a lower environmental impact has been noticed as a growing tendency. The status of sustainability is a common goal among governments, companies, and consumers, who increasingly intend to purchase goods in line with sustainable and less environmentally aggressive practices. The following steps by the vehicle manufacturers accompany the general worries and seek actions and practices aiming at environmental impact reduction, which is directly reflected in the relations with providers and the materials used for vehicle component manufacturing. Thus, natural fiber composites might be a way of getting aligned with the new tendencies (Lampón and Muñoz- Dueñdueñas 2023).

Technological innovation within natural fiber composites is also vital, as light and resistant materials are always essential for several applications. Many materials composed of natural fibers present such properties (De Souza et al. 2022; Tawfik et al. 2017). From a technical point of view, composite materials made with natural fibers have satisfactory mechanical properties and play a fundamental role in the design of more sustainable materials. At the same time, they bring the possibility of reducing the weight of the manufactured vehicle, which is a key factor sought by the automotive industry during manufacturing (Dias et al. 2017). It is also an excellent opportunity for integration between fiber producers and manufacturers, promoting relevant partnerships for consolidating new production chain processes.

On the other hand, challenges in accessing new technologies might make it harder to apply them, especially for small and micro-enterprises. Lack of information on materials’ behavior after consumption is also a risk while alternatives such as reprocessing and adequate disposal are still unknown. In this case, small and micro-enterprises must innovate by assimilating external knowledge resources, with the purpose of creating new processes and goods (Fanhaimpork 2023).

It is also essential to take action to mitigate eventual threats, such as the competitiveness of new materials compared to conventional ones. Both the financial performance of manufacturing companies in the automotive sector and circular economy practices were previously evaluated by Rodriguez-Gonzalez et al. (2022), considering sustainable supply chain management. It was found that financial performance is strengthened with the implementation of a circular economy and is directly linked to companies’ commitment to influencing their suppliers to align with sustainable practices. The benefit of adopting composite materials is therefore also seen from a financial point of view. It is necessary to make sure that initiatives are economically viable when considering several factors, such as cost reduction, the choice of raw materials, safety issues, and raw material availability for resources and technical parameters, all of them relevant for the automotive industry.

With globalization, especially in commercial transactions, there is an increasing search for common alignment on the practices and standards of organizations, and this is reflected in the international agreements prioritized, among them the achievement of the SDGs. In this sense, among the established goals, those related to “responsible consumption and production” and “climate action” have been prioritized by most organizations worldwide. In this context, research and development must be conducted through partnerships among the production chain stakeholders, splitting eventual risks and costs associated with developing new technologies.

Conclusion

Material modification has been taking place for an extended period, and the search for lighter yet resistant vehicle components has been widely studied and shows itself to be feasible. However, paying attention to some of the risks, such as unknown product costs, is essential.

From a managerial point of view, adopting a new business model requires effort on the part of organizations, and the greatest difficulty may lie in projecting the financial return and viability compared to the market for automotive components made from conventional materials. It can be seen that the structure of the production chain for natural fibers has already met the new demands of the industrial sectors, but it may be important to carry out more detailed studies into the chain’s ability to guarantee the continued availability of raw materials. On the other hand, both the academic community and companies have sought the use of more efficient materials, dictating Brazil’s regulatory environment. There are efforts to promote changes in well-established paradigms, especially regarding sustainability.

Once identified, risk reduction strategies, such as stakeholder partnerships, may overcome threats and weaknesses. Risks can be faced collectively by partnering, and costs can be shared. Another advantage is that information would be easily transferred. For stakeholders, this partnership can strengthen the different links in the production chains, promoting business growth. In addition to market positioning, given the need for companies to disclose shares within the scope of ESG, investors can benefit from investment indices related to sustainability.

Assessing different aspects, such as political, economic, social, technological, environmental, and legal aspects, resulted in a large panorama overview of the Brazilian automotive industry. Even though most of the producers, micro-enterprises, and small-sized enterprises do not possess the means to invest in proper research and development fields, public incentives have been practiced to encourage the production chain as whole to seek less environmentally aggressive solutions for their business model. In fact, tax-reduction policies were implemented so that different constituents of the production chain could direct more resources toward innovation. Despite technical difficulties, Brazil holds massive bio-natural potential, making the modernization and better structuration of the sector crucial for further development.

In conclusion, several more strengths and opportunities must be observed even after identifying weaknesses and threats. These factors must be synergistically utilized to amplify gains for the entire production chain, allowing a better alignment of the market to new tendencies, especially regarding new materials. Alternatives with lower environmental impact promote higher competitiveness and attendance to the ESG guidelines.

Given the need for information on the financial viability of producing components from composite materials, we suggest an investigation and comparison of these aspects in future work. A detailed investigation of the capacity of the entities involved in production chains on a regional basis could also add strategic value to companies.

Highlights

• The use of natural fibers in the Brazilian automotive industry was study.

• The political-legal, the natural-economic, the socio-economic and the sectorial-technological aspects was evaluated.

• A SWOT matrix was made summarizing the strengths, weaknesses, opportunities and threats.

• Sustainability is a key for a company’s competitiveness.

Acknowledgments

The authors also would like to acknowledge the research grant (3300406-4) awarded by CAPES.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

This research received funding from FAPESP process [2022/03762-8].