Automotive industry in Brazil - Statistics & Facts
As one of the world’s major emerging economies, Brazil is also home to one of the most prominent automotive markets worldwide. Serving a population of over 212 million people, the South American nation ranks as the sixth-largest car market globally, based on new registrations. Brazil not only stands out for its high demand for vehicles, it is also among the ten leading passenger vehicle manufacturers worldwide. The COVID-19 pandemic and global automotive chip shortage struck as the country’s automotive industry was still on the road to recovery from previous crises, but 2021 showed some signs of recovery. That year, the Brazilian motor vehicle sector recorded annual net revenue of 53.6 billion U.S. dollars, a drop of a 9.46 percent of its 2019 revenue but an increase of over a third its 2020 results.
A market challenged by external crises
In the last century, market protection in the form of tariffs and quotas on imports prompted companies to open or expand automotive production facilities within Brazil, helping stimulate the local economy. Brazil’s light vehicle production value reached close to 119.13 billion Brazilian reals (around 24.7 billion U.S. dollars based on June 16, 2023 exchange rates) in recent years. However, the sector has had to endure a few bumps on the road in the past decade, the latest being an unprecedented pandemic and global automotive chip shortage and rising raw material prices. In 2022, passenger car production in Brazil—which account for more than three-quarters of the country’s motor vehicle output—did not recover from reaching the lowest figure recorded in at least ten years in 2020. Around 1.82 million cars were manufactured in Brazil in 2022, compared to nearly 2.5 million automobiles in 2019. These challenges stopped the growth trend reported between 2016 and 2019, as the country started bouncing back from the 2014 economic crisis.
Likewise, motor vehicle sales are also directly affected by a nation’s social and economic conjecture. In 2022, approximately 2.1 million new motor vehicles were sold in Brazil, a slight dip compared to 2021. Just three years earlier, this figure stood at nearly 2.8 million units. While this was the most prominent figure reported since 2014, it still lagged far behind the average 3.5 million units sold annually in the first half of the decade.
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