This paper provides an overview of new product development activities in Brazil considering the potential of the automotive industry. It consists of descriptive research mostly using secondary data. It also includes some site visits in OEM and autoparts in addition to field data collected from previous research. The first part of the paper provides a Brazilian-related literature review on product development and production in the automotive industry considering OEM and autoparts. The second part of this article describes the technological capabilities in new product development together with some recent examples of the development of a complete derivative product at a world level. Findings have indicated that the automakers present in Brazil have different levels of capabilities and competencies. Furthermore, there has been a change in the quality, complexity and responsibility of activities that Brazilian engineering has carried out. Finally, research implications are highlighted, including some perspectives for future research.