Vehicle Exports Hit Record, but Production Plummets Amid Chinese Surge

Over one million vehicles were sold in Brazil during the first five months of 2025, and exports in May recorded their best performance since August 2018.

Despite this, the strong sales did not translate into higher production. Vehicle output fell by 5.9% compared to April, totaling 214.7 thousand units—including passenger cars, light commercial vehicles, trucks, and buses.

Exports performed well, driven by a rebound in the Argentine market. However, the drop in production suggests a decline in the domestic market share of imported vehicles.

There has been a healthy trade flow with Argentina, but the case of Chinese vehicle imports stands out due to an unusual surge.

“China benefits from significantly lower taxation compared to other producing countries, creating a dangerous distortion in the market,” said Igor Calvet, the new president of the National Association of Motor Vehicle Manufacturers (Anfavea).

Source: Gazeta SP

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