Brazilian vehicle production grows 8.5% through August

Brazil produced 1.9 million vehicles in the first eight months of the year, an 8.5% increase from the same period in 2025 and the highest volume since late 2019, according to the National Association of Motor Vehicle Manufacturers, known as Anfavea.

The increase came mainly from passenger cars and light commercial vehicles. Their production rose 14.9% between January and August, reaching 1.8 million units.

Exports presented a sharply different picture. Shipments rose 2.2% in August from July, but fell 31.7% compared with August last year. Over the first eight months, exports dropped 22.9%, from 381,200 to 294,200 vehicles.

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Ninety-five percent of the decline in our exports is directly derived from the fall in Brazil's sales to Argentina.

Argentina accounted for much of the decline. Brazilian shipments there fell 36.6%, from 226,100 vehicles in the first eight months of 2025 to 143,300 this year. Anfavea president Igor Calvet said 95% of the export decline resulted directly from lower Brazilian sales in Argentina, calling the figures “concerning.”

“I have been warning here that market conditions in Argentina are making our entry difficult,” Calvet said, citing increased competition and Brazil’s rapidly shrinking market share. Exports to Chile fell 31.2% and those to Uruguay declined 28.8%. Colombia was the only Latin American market listed where Brazilian exports increased, rising 5.5%.

Brazil, meanwhile, imported 406,700 vehicles through August, 29.8% more than in the same period last year. Calvet said Chinese electric vehicles had taken the share previously held by Brazilian exports in Argentina. China remained Brazil’s leading source of imports, with shipments rising by almost 110% year on year.

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I have been warning here that market conditions in Argentina are making our entry difficult. There is greater competition, and we are losing market share in Argentina very quickly.