H. Yoo
Research expert covering South Korea
Automotive industry in Brazil - Statistics & Facts
Brazil has one of the major economies in the world and one of the largest automobile markets. The country is the sixth-largest car market globally and boasts a population of around 212 million. Brazil not only stands out for its high demand for vehicles; it is also among the leading passenger vehicle manufacturers worldwide. Currently, Brazil's automotive industry is undergoing a transformation. This transformation is being driven by substantial investments and a strong focus on sustainable mobility.
Stellantis, formed by a merger between Fiat Chrysler Automobiles and the French PSA Group in 2021 and the sales leader in Brazil, planned 6.07 billion U.S. dollars of record investment from 2025 to 2030. This would be one of the largest automotive industry investments in Brazil’s and Latin America’s history. The investment plan includes the launch of more than 40 new products, the development of decarbonization technologies, and strategic new business opportunities.
Similar steps are being taken by other automakers. By 2032, Hyundai is aiming to invest an amount exceeding 1.1 billion U.S. dollars in Brazil, while Volkswagen, the leading brand for used car sales in Brazil, raised its investment plan for the current 2022–2028 period considerably. General Motors also announced a 983 million U.S. dollars investment for its operations in São Paulo which is part of their 1.4 billion U.S. dollars investment cycle in Brazil between 2024 and 2028.
Such ambitious investment projects are stimulated by the federal government's latest green mobility plan, which is targeted at innovative initiatives ‘Mover’. The goal of this program is to build safer and less polluting cars by giving away 3.54 billion U.S. dollars of tax benefits within the next five years. Companies funding the decarbonization measures in the period of 2024 to 2028 are also entitled to an average 800 million U.S. dollars of incentives, which is expected to reach over two billion U.S. dollars. The effects of these transformation efforts were reflected in EV sales in Brazil. In 2024, EV sales almost doubles compared to 2023 and more than tripled compared to 2022 EV sales.
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 197.44 billion Brazilian reals (around 36 billion U.S. dollars based on September 01, 2025 exchange rates) in recent years. However, Brazil's car industry has had difficult past years. After the pandemic, the sector was affected by the global shortage of automotive chips until 2022. Even though registrations of new passenger cars showed signs of improvement in 2023 and 2024, the registration amount was still lower than the pre-pandemic level.Record investments in modernization and sustainability
Investments in the Brazilian automobile sector rise significantly, with a strong emphasis on modernization, sustainability, and growth in production capacities. Automakers in the country invest considerable amounts of funds to expand their operations, develop new technologies, and meet consumer demands.Stellantis, formed by a merger between Fiat Chrysler Automobiles and the French PSA Group in 2021 and the sales leader in Brazil, planned 6.07 billion U.S. dollars of record investment from 2025 to 2030. This would be one of the largest automotive industry investments in Brazil’s and Latin America’s history. The investment plan includes the launch of more than 40 new products, the development of decarbonization technologies, and strategic new business opportunities.
Similar steps are being taken by other automakers. By 2032, Hyundai is aiming to invest an amount exceeding 1.1 billion U.S. dollars in Brazil, while Volkswagen, the leading brand for used car sales in Brazil, raised its investment plan for the current 2022–2028 period considerably. General Motors also announced a 983 million U.S. dollars investment for its operations in São Paulo which is part of their 1.4 billion U.S. dollars investment cycle in Brazil between 2024 and 2028.
Such ambitious investment projects are stimulated by the federal government's latest green mobility plan, which is targeted at innovative initiatives ‘Mover’. The goal of this program is to build safer and less polluting cars by giving away 3.54 billion U.S. dollars of tax benefits within the next five years. Companies funding the decarbonization measures in the period of 2024 to 2028 are also entitled to an average 800 million U.S. dollars of incentives, which is expected to reach over two billion U.S. dollars. The effects of these transformation efforts were reflected in EV sales in Brazil. In 2024, EV sales almost doubles compared to 2023 and more than tripled compared to 2022 EV sales.
