Brazil

Brazil Vehicle Production Posts Its Strongest First Half Since 2019

Brazil's vehicle industry expanded output by 8.8% in the first half of 2026, while stronger domestic registrations led Anfavea to lift its full-year outlook despite weaker exports and a slower recovery in heavy vehicles.

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Brazil's vehicle production rose 8.8% in the first half of 2026 compared with the same period last year, reaching 1.37 million units across automobiles, light commercial vehicles, buses and trucks. The result marked the strongest first half for the industry since 2019, Anfavea said.

The domestic market carried most of the improvement. Automobile sales increased 23.7%, adding 208,000 units compared with the first half of 2025, while heavier segments continued to recover at a slower pace.

Truck sales fell 10.5% during the semester, and bus sales declined 11.6%. Both categories showed better year-on-year results in June, but that monthly improvement was not enough to change expectations of another year of contraction for heavy vehicles.

Registrations rose 18.5% in the first six months, with 1.42 million vehicles sold. In June alone, 272,500 units were registered, a 28% increase from June 2025.

With first-half demand running above its earlier assumptions, Anfavea raised its forecast for the full year. The association now expects Brazil to exceed 3 million new vehicle registrations in 2026, a level not reached since 2014, implying growth of 12.1% over 2025 rather than the 2.7% projected at the start of the year.

The production outlook was also revised upward, from 3.7% growth to 5.8%. That would bring total 2026 output to about 2.8 million vehicles.

Trade figures remained more uneven. Exports fell 21.2% in the first half to 216,600 units, including a 26.7% decline in June to 36,700 units, while imports reached 280,600 units in the semester, up 22.8%. June imports totaled 57,000 vehicles, a 49.3% rise from the same month last year.