Vehicle Exports from Brazil Grow 60% in First Half of the Year

Vehicle exports from Brazil increased by 60% in the first half of the year, primarily driven by demand from Argentina, the country’s main destination market.

However, high interest rates—currently at 15% for the Selic rate—are slowing domestic sales. For consumers, car loan interest rates reach as high as 27% per year.

The data was presented on Monday (7) in São Paulo during a press conference held by the National Association of Motor Vehicle Manufacturers (Anfavea).

According to the association’s president, Igor Calvet, another consequence of high interest rates is the rise in defaults among vehicle buyers. While the default rate stands at 3% among corporate buyers, it reaches nearly 5% for individual consumers.

Another figure presented compares vehicle production this year to the same period in 2011, 15 years ago. In that comparison, Brazil’s vehicle industry currently produces 13% less than it did back then, Calvet explained.

Despite this, the Anfavea president highlighted the recent growth in Brazil’s vehicle industry.

As for vehicle registrations—meaning the number of vehicles purchased and put into circulation—there was an increase of nearly 5% in the first half of this year compared to the same period in 2024, representing 55,000 new vehicles on the road.

Electric Vehicles
Another data point that indicates changing consumer behavior is the average growth in registrations of electric and hybrid vehicles, which have accounted for around 10% of all new vehicle registrations since the beginning of the year.

According to Anfavea, although this is a positive trend, it hardly reflects progress for Brazil’s domestic industry, as nearly all such models are imported from China.

As the main exporter of vehicles to Brazil, China sold nearly 71,000 vehicles to the country in the first half of this year, accounting for 6% of total registrations—a 37% increase over the period.

Source: Agência Brasil

Sharing is caring!