By Rodrigo Custodio, December 2024
Brazil is again at one of its automotive crossroads. The moment reminds many of 2013, when the country was aiming at 5 million vehicle sales and production, celebrated Inovar-Auto, and saw an influx of FDI. This was then followed by the country’s fiscal policy misarrangements, leading to a sudden trend reversal.
2024 is still far from the 5 million vehicles target once dreamt of; nonetheless, sales show a consistent ramp-up for the 4th consecutive year. Brazil is amongst the leading growth markets projected for 2025. We celebrate MOVER and welcome new players, some of which will operate legacy plants of those who abandoned the market.
Our investigation (conducted from June-September/24) suggests that the market is performing well despite macroeconomic challenges and that there’s a different growth engine, with a new competitive set-up being drawn for 2025.
Whether macroeconomics will help its development in 2025 remains to be seen, but as the industry continues its way towards 3 million units, the entire value chain needs to adapt to a new game.
Our report highlights some of the conclusions. We hope that you enjoy your reading!
