This thesis assesses the role of government intervention in Brazil’s automotive sector, focusing on its ability to foster industrial growth, innovation, and global prominence. The study examines historical context, economic impacts, and alignment of government policies with industry needs. The research advocates for a balanced policy approach that promotes innovation and domestic protection. It provides a rationale and strategic policy recommendations to enhance global competitiveness and export expansion by establishing a domestic auto company. Suggestions for future research include exploring the integration of emerging technologies.