Automobile Exports Hit Best Month in Nearly 7 Years in May, but Production Declines

Exports of automobiles manufactured in Brazil recorded their best month in nearly seven years in May, with 51,500 units shipped abroad during the period — nearly double the volume of the same month in 2024. This marks the highest number of vehicles exported in a single month since August 2018. The data was released on Thursday, June 5, by the National Association of Motor Vehicle Manufacturers (Anfavea). From January to May 2025, approximately 200,000 units were exported, representing a 56.6% increase compared to the same period in 2024.

According to the automakers’ association, this strong export performance is being driven by a recovery in the Argentine market. However, the internationalization of production has not led to an increase in domestic production capacity. Vehicle production in Brazil declined by 5.9% in May compared to April, with just under 215,000 units produced during the month. Over the first five months of the year, production rose 10.6%. However, it’s essential to note that last year’s output was significantly impacted by floods in Rio Grande do Sul, which distorts the year-on-year comparison.

Domestic vehicle purchases by Brazilians increased by about 8% in May, but more than half of the rise (65%) was attributed to imported vehicles — mainly from “China. “There is a healthy increase in trade flows with Argentina, but in the case of models coming from China, we’re seeing an excessive inflow (into Brazil), benefiting from much lower tariffs than those applied by other producing countries,” says Anfavea president Igor Calvet.

Vehicle registrations grew at a similar pace, reaching the 1 million mark on June 3 — one week earlier than last year. Approximately 10.4% of vehicles registered in Brazil in May — or 22,300 units — were hybrids or electric vehicles, the highest level ever recorded by Anfavea.

Source: Veja Negócios

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