Brazil's domestic car sales due to the weak and weak economic growth, the country plans to seek re-signed with Mexico bilateral automotive trade agreements.

Previously, Brazil and Mexico signed the agreement will expire quota export cars in March 2015, however, informed sources said Brazil does not want to implement a free trade agreement cars, as it would make it faces competition with Mexico. Analysts said the retail price of a car in Mexico is only half of Brazil, and Brazilian higher taxes, high transport costs and labor costs as well as trade protection measures, it is not conducive to compete with Mexico.

In addition, economic growth in Brazil has become stagnant or even decline, while Argentina, Brazil began to impose trade restrictions on foreign exchange reserves declined after a certain extent, also dragged down the auto exports to Brazil. Data show that last year a total of Brazilian exports to Argentina of 335,000 new cars, plunged 40 percent year on year, marking the lowest level since 1999.

Last year, Mexico has more than Brazil became Latin America's largest car producer, but Brazil is still one of the world's five largest automotive market. Analysts had forecast LMCAutomotive Rinna said, standing in Latin America, Mexico's largest auto-producing countries will remain until 2021, when Brazil is likely to regain the throne, and the two car production is expected to reach 8.83 million / year.

2014 Brazil's vehicle production fell 15 percent to 3.15 million, a record low over the past decade, while its domestic car sales also fell by 7% to 3.5 million.

Benefit from strong demand from the US and Canada, Mexico, the automotive market is developing rapidly, the Mexican auto production last year reached a new high of 3.22 million, an increase 10 percent, while its car exports also rose 9.1 percent, reaching 2.64 million. Currently BMW, Kia, Audi, Honda, Nissan and Mazda have started or are considering setting up production capacity in Mexico.