Auto Parts Trade Balance Records USD 4.89 Billion Deficit in First Four Months of 2025

The Brazilian auto parts industry ended the first four months of 2025 with a trade deficit of USD 4.89 billion, a 19.2% increase compared to the negative balance of USD 4.10 billion recorded in the same period last year, according to the National Union of the Automotive Vehicle Component Industry (Sindipeças).

The negative trade balance is mainly due to strong import activity, which reached USD 7.54 billion from January to April this year — up 14.1% from the USD 6.60 billion recorded in the first four months of 2024.

Exports performed well, totaling USD 2.64 billion in the same period. However, the 5.7% growth compared to USD 2.50 billion in 2024 was not enough to offset the stronger rise in imports.

In April alone, companies recorded a USD 1.24 billion trade deficit, 6.1% higher than the USD 1.17 billion negative balance in April 2024. Exports totaled USD 674.5 million, representing a 14.9% decrease from March 2025 (USD 792.71 million) and a 0.9% drop compared to April 2024 (USD 680.88 million), indicating, according to Sindipeças, a loss of momentum.

Imports remained strong in April, totaling USD 1.91 billion, a 0.9% increase over March (USD 1.89 billion) and 3.5% higher than in April 2024 (USD 1.85 billion). “This scenario highlights the structural dependence of the sector on foreign components, which intensified in the early months of 2025,” Sindipeças stated.

Below is a historical overview of Brazilian auto parts imports. The chart was created using DataLiner data:

Brazilian Auto Parts Imports | Jan 2022 – Mar 2025 | TEUs

Source: DataLiner (click here to request a demo)

Despite recent declines, Sindipeças forecasts a moderate recovery in exports in 2025, driven by the resumption of economic activity in key trading partners, monetary easing in developed economies, and improved global financial conditions. “The main highlight is Argentina, which recorded 22.6% growth year-to-date and accounted for 38.5% of total exports, supported by continued local economic recovery and the elimination of import taxes earlier this year.”

Sindipeças also notes that despite positive external signals, adverse factors remain. “The rise in global protectionism and China’s growing presence in markets traditionally served by Brazil are expected to limit export expansion. Additionally, indirect effects may arise from U.S. import tariffs, especially if Mexican exports are redirected to markets where Brazil operates.”

Imports

Auto parts were imported from 134 markets, with China at the top of the list: purchases totaled USD 1.43 billion from January to April 2025, up 23.7% year-over-year and accounting for 19% of total imports.

The United States remained second, with USD 776.22 million (+7.4%, 10.3% share). Japan rose to third place with USD 686.53 million (+21.0%, 9.1% share).

Germany dropped to fourth place with USD 661.43 million (+6.7%, 8.8% share), followed by Mexico, which accounted for USD 533.29 million in purchases (+10.2%, 7.1% share).

Exports

Brazil exported auto parts to 173 countries, with Argentina as the top destination in the first four months of 2025, receiving USD 1.01 billion (+22.6%, 38.5% share).

The United States ranked second, with USD 417.8 million, down 4.8% from the first four months of 2024 and a 15.8% share.

Mexico accounted for USD 209.68 million in exports (32.5%, 7.9% share). Germany received USD 145.34 million (5.5% share), and Chile, in fifth place, imported USD 75.97 million, up 6.7%, with a 2.9% share of total Brazilian exports.

Source: Transporte Moderno

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