Brazilian Automotive Industry: Growth Amidst Export Decline
Brazil’s automotive industry saw mixed results in December 2024, with production and domestic sales on the rise, while exports took a significant hit. According to Anfavea, the Brazilian automotive association, December production totaled 190,100 units, marking a decrease from the 236,100 units produced in November. However, when compared to the same month in 2023, December 2024 saw an increase of 10.8% in production, reflecting a steady recovery in the sector.
Domestic sales in December 2024 increased by 1.6%, reaching 257,400 units, compared to November’s figures. This growth in sales is an encouraging sign for the local automotive market, especially as consumers continue to show demand for both new and used vehicles. On the export front, however, Brazil saw a significant decline of 20.3%, with only 31,400 units being exported in December 2024, compared to higher numbers in November. Despite this drop, exports for the year compared to 2023 were up by 22.1%, demonstrating the global competitiveness of Brazil’s automotive products.
2024 Yearly Performance: A Mixed Outlook
For the full year of 2024, Brazil’s automotive production grew by 9.7% compared to 2023, with a total of 2.549 million units produced. This growth highlights the sector’s resilience as it continues to recover from the challenges faced in previous years. Domestic sales in 2024 also showed strong performance, increasing by 14.1% to 2.634 million units. These numbers are indicative of strong consumer demand, aided by favorable credit conditions that have helped individuals acquire new vehicles.
Exports for the year, however, did not mirror this growth, with a slight decline of 1.3% to 398,500 units. This decline in exports could be attributed to various global economic factors, including supply chain disruptions, inflation, and fluctuating demand in international markets. Nonetheless, the overall performance of the Brazilian automotive sector remains strong, with significant gains in production and domestic sales.
Historical Milestone: Combined Sales of New and Used Cars
A key highlight for Brazil’s automotive industry in 2024 was the record-breaking combined sales of new and used cars. With a total of 14.2 million units sold, this figure represents the highest-ever sales figure in the country’s automotive history. This milestone suggests a strong pent-up demand for individual transportation, as Brazilian consumers increasingly turn to personal vehicles, spurred by improved credit conditions.
Anfavea’s president, Márcio de Lima Leite, emphasized that this surge in demand is largely driven by favorable credit terms, which have allowed more consumers to purchase both new and used cars. With continued improvements in these credit conditions, it is expected that more Brazilians will have access to financing, potentially boosting future sales even further.
Projections for 2025: Optimism for Continued Growth
Looking ahead to 2025, Anfavea projects continued growth in Brazil’s automotive sector. Production is expected to increase by 7.8%, reaching 2.749 million units. Domestic sales are also anticipated to grow by 6.3%, totaling 2.802 million units, as more people turn to car ownership due to the ongoing availability of favorable credit conditions. Exports are projected to rise by 7.4%, reaching 428,000 units as global demand stabilizes and Brazilian automotive products gain further traction in international markets.
The optimistic projections for 2025 reflect a strong recovery and ongoing momentum within Brazil's automotive sector. The combination of rising domestic sales, increased production capacity, and the potential rebound in exports places Brazil in a favorable position to maintain its standing as one of the world’s leading automotive manufacturers.
