Brazil Car Output Slips Again in December

Brazil’s car production fell 13.5% month-on-month to 159.6 thousand units in January 2026, reflecting a stable domestic market and weaker export demand. The comparison was also affected by a high base, as January 2025 recorded the strongest output for the month in the past six years. Passenger car production declined 13.9% to 120.5 thousand units, while output of light commercial vehicles dropped 20% to 30.5 thousand. In contrast, truck production increased 18.6% to 6.8 thousand units, and bus manufacturing surged 159.6% to 1,820 units.

Brazil’s car production dropped by 15.8% from the previous month to 184.5 thousand units in December 2025, partly due to the fewer number of working days. Year-on-year, auto production declined 3.9% compared to December 2024. For the year, Brazilian automakers produced 2.65 million vehicles, up 3.5% from 2024 and marking the industry’s strongest performance since 2019, mainly underpinned by light vehicles. Still, output fell short of manufacturers’ expectations for 7.8% growth, mainly impacted by high interest rates and increased competition from imported vehicles. For 2026, industry group Anfavea forecasts production to rise by 3.7% to about 2.7 million units.

Brazil’s car production fell 11.6% in November 2025 to 219.1 thousand units from October and declined 8.2% compared with the same month last year. Vehicle sales dropped 8.5% month-on-month to 238.6 thousand units, while exports fell 12% to 35.7 thousand units. Despite the November slowdown, total output for the first 11 months of 2025 reached 2.4 million units, up 4.1% from the same period in 2024. However, this growth remains well below expectations. Anfavea President Igor Calvet said "We are still seeing cumulative production 4.1% higher than in the first eleven months of 2024, but this growth is well below what we had projected for 2025, which has kept us on alert in recent months." Calvet added that the industry expects stronger sales in December following the success of the Auto Show, but highlighted ongoing challenges in the heavy vehicle segment, which remains sensitive to financing conditions.