Brazil Vehicle Production Falls in September

Brazil’s vehicle production fell 1.1% month-over-month to 268,300 units in September 2026, following a 6.8% increase in August. Passenger car production fell 2.8% to 209,000 units, while light commercial vehicle output jumped 8.6% to 46,200 units. Truck production declined 1.3% to 11,600 units, while bus output slumped 23.2% to 1,400 units. Despite the monthly decline, production reached its highest September level since 2014, rising 10.2% year-on-year. In the first nine months of the year, production rose 8.7% from the same period in 2025 to nearly 2.2 million units. However, of the 173,000 additional vehicles produced compared with last year, only 50,000 were manufactured entirely in Brazil, while the remainder were SKD and CKD models.

Brazil’s vehicle production increased 6.8% month-on-month to 271.2 thousand units in August 2026, accelerating from a 3.1% increase in July and reaching the highest monthly output since October 2019. Light vehicle production reached 257.5 thousand units, with passenger cars up 9.5% to 214.9 thousand units and light commercial vehicles down 2% to 42.6 thousand units. Heavy vehicle production totaled 13.6 thousand units, with trucks down 2.8% to 11.8 thousand units and buses declining 13.1% to 1.86 thousand units. Production rose 9.4% year-on-year. In the first eight months of 2026, output totaled about 1.9 million units, up 8.5% year-on-year. Despite the strong growth, two-thirds of the additional 150,000 vehicles produced this year were SKD and CKD models, imported in parts and assembled in Brazil.

Brazil's vehicle production increased 3.1% month-over-month to 253.9 thousand units in July 2026, rebounding from a 3.0% decline in June and reaching the highest level since March. Light vehicle output rose 2.9%, driven by a 4.3% increase in passenger car production, which more than offset a 2.9% decline in light commercial vehicles. Truck production climbed 11.2%, supported by gains across all categories, while bus output fell 8.0%. Growth in the first seven months of the year rose to 8.3%. According to Anfavea, Brazil ranked as the world's second-fastest growing vehicle producer, behind India (14.5%). Despite weaker exports and rising imports, the domestic automotive industry remained resilient, supported by solid local demand. Anfavea President Igor Calvet stated the sector's performance was significant despite external trade challenges and import volumes exceeding historical averages. On an annual basis, output rose 5.9%.