Brazil auto output rises 3.5% in 2025 as exports post strong gains, Anfavea says

Brazil’s vehicle production ended 2025 on a growth trajectory, marking the automotive industry’s best performance since 2019, according to data released on Thursday (15) by Anfavea, the National Association of Motor Vehicle Manufacturers. The figures show higher output, a sharp increase in domestic registrations and a solid export performance, particularly in the second half of the year.

Anfavea said automakers produced 2.65 million vehicles in 2025, up 3.5% from 2024. The result reflects an improvement in factory activity over the course of the year, despite temporary shutdowns and production adjustments in some months.

Exports totaled 528,000 vehicles, a strong increase of 32.1%, driven mainly by demand from South American markets, especially Argentina, Chile and Colombia.

“The high Selic [Brazil’s benchmark interest rate] and ongoing geopolitical tensions, which limited a more consistent recovery of the sector throughout 2025, are still present at the start of this year. This scenario leads us to project market behavior in 2026 that will be very similar to what was observed in the second half of last year,” said Anfavea president Igor Calvet.

Imports raise concerns

Throughout 2025, Anfavea also reiterated its concern over the growth of imported vehicles, which rose 6.6% in the Brazilian market. Over the year, Brazil imported 497,765 vehicles, the highest volume in the past 11 years.

The figure approaches the peak recorded in 2014, when 617,023 foreign vehicles entered the country. According to the association, the key difference lies in the origin of those models. While Argentina was the main supplier at the time, China took a leading role among imports in 2025.

China accounted for 37.6% of the nearly 498,000 imported vehicles registered in Brazil last year. As a result, Mercosur countries and Mexico lost their traditional leadership, with suppliers outside those blocs representing 50.2% of imported vehicles sold in the country.

“Our expectation is that the inflow of imported electrified models will slow over the course of 2026, with the start of domestic production of hybrid and electric vehicles at several plants in Brazil, the end of incentives for importing SKD and CKD kits, and the reinstatement of the import tax rate scheduled for July,” Calvet said.

The shift became more pronounced from July onward, as Chinese automakers rapidly expanded their presence in the Brazilian market. In 2025, six new Chinese brands entered the country: Denza, MG Motor, GAC, Leapmotor, Omoda & Jaecoo, and Geely.

According to Anfavea, this movement is reshaping the sector’s competitive landscape and increasing pressure on local manufacturers, particularly in higher value-added and electrified segments, requiring responses in investment, technology and production scale.

Structural challenges ahead

For the association, the 2025 data points to an industry in recovery but still operating below its potential. Rising imports, international competition and a more subdued production pace raise concerns for 2026, while export performance stands out as a key factor supporting Brazil’s automotive sector.

Source: Times Brasil

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