Brazil Auto Parts Industry Posts $1.4 Billion Trade Deficit in January 2025

Brazil’s auto parts industry started 2025 with a $1.4 billion trade deficit, marking a 33.8% increase compared to the $1.07 billion shortfall recorded in January 2024, according to the National Auto Parts Union (Sindipeças).

Exports reached $568.7 million in January 2025, a 1.3% increase over the $561.6 million shipped in the same month last year. However, this figure was 13.1% below the 2024 export average, Sindipeças reported. “The growth in exports at the start of the year reflects, in our view, a slight improvement in competitiveness due to a weaker exchange rate and stronger demand for components abroad, particularly as Argentina’s economic outlook stabilizes,” the trade group stated.

On the other hand, imports continued to rise. Foreign purchases totaled $2.0 billion, a 22.6% increase from the $1.6 billion imported in January 2024. “With the slowdown in economic activity, high interest rates, and a weaker real, we expect component imports to decline while exports expand into new markets in 2025,” Sindipeças noted.

Sindipeças highlighted that the global trade landscape at the start of 2025 is markedly different from previous years. “The first policy measures announced by President Trump following his inauguration—marked by heightened protectionism, tariff hikes, a crackdown on illegal immigration, and a shift in U.S. foreign policy—suggest that global trade risks will intensify. While concrete threats are emerging, it would be shortsighted to ignore the opportunities ahead. Understanding the current scenario and its unfolding developments will be essential for nations to navigate trade relations successfully in the coming years.”

Exports

In January 2025, Brazil exported auto parts to 155 countries, with Argentina maintaining its position as the top destination. Shipments to Argentina accounted for 36.6% of total exports, reaching $208.1 million, a 26.9% increase from the $164 million exported in January 2024.

The United States ranked second, absorbing 18.7% of exports and making $106.5 million in purchases—up 15.5% from $92.2 million in the same period last year.

Mexico followed, receiving $39.2 million in Brazilian auto parts, 42.0% less than in January 2024, representing 6.9% of total exports. Germany accounted for 6.5% of exports, totaling $36.9 million, a 28.8% increase from $28.7 million in 2024.

Among other key markets, Norway saw a 63.2% surge in imports from Brazil, reaching $15.9 million, while Chile, which took in $15.06 million, experienced a 21.5% decline from January 2024.

Imports

Brazil imported auto parts from 195 markets in January 2025, with China remaining the largest supplier—a position it has held since 2018. Imports from China jumped 39.3% year-on-year to $408.9 million, representing 20.4% of total imports.

The chart below shows the upward trajectory of Brazil’s imports of auto parts between January 2021 and December 2024. The data comes from DataLiner.

Auto Parts Imports | Jan 2021 – Dec 2024 | TEUs

Source: DataLiner (click here to request a demo)

Purchases from the United States reached $203.7 million, a 19% increase from January 2024, accounting for 10.2% of total imports.

Germany ranked third with $190.5 million in exports to Brazil, 12.9% higher than in the previous year. These exports made up 9.5% of total imports.

Japan followed with $175 million in shipments to Brazil, a 9.9% increase, representing 8.7% of total imports.

Mexico accounted for 7.3% of imports, supplying $147.4 million, up 22.2% from January 2024. Italy rounded out the top six with $112.5 million, marking a 39.9% increase from the previous year.

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