Vehicle production in Brazil up 8.8% in first half of year
In the first half of this year, vehicle production - which includes passenger cars, light commercial vehicles, buses, and trucks - grew 8.8 percent compared to the same period last year, reaching 1.37 million units. This was the best first-half result since 2019, according to a report released on Tuesday (Jul. 7) by the National Association of Motor Vehicle Manufacturers (Anfavea).
According to Anfavea, the strongest growth was in the passenger car segment, where sales rose 23.7 percent, with 208,000 more units sold than in the first half of last year. Meanwhile, the heavy-duty vehicle segment - including trucks and buses - continues to recover at a slower pace.
During the first half of the year, truck sales fell by 10.5 percent, while bus sales dropped by 11.6 percent. Although both segments posted better results in June than a year earlier, the performance was still not enough to reverse expectations of another year of decline.
As for new vehicle registrations, growth reached 18.5 percent in the first half of the year, with 1.42 million vehicles sold. In June, 272,500 units were sold, a 28 percent increase compared to June last year.
Outlook for the year
With better-than-expected performance in the first half of the year, particularly in domestic vehicle sales, Anfavea has decided to revise its annual growth forecast upward. The association now expects Brazil to end 2026 with more than 3 million registered vehicles, representing growth of 12.1 percent compared to 2025 - well above the 2.7 percent forecast at the beginning of the year.
Regarding production, the growth forecast was revised upward from 3.7 percent to 5.8 percent, with 2.8 million vehicles expected to be produced in 2026.
Exports and imports
Despite the positive outlook, exports showed no signs of recovery in the first half of the year, falling 21.2 percent compared to the same period last year, to a total of 216,600 units. In June alone, the decline was 26.7 percent compared to the same month last year, with 36,700 units exported.
Imports, meanwhile, totaled 280,600 units, representing an increase of 22.8 percent in the first half of the year. In June, 57,000 units were imported, a 49.3 percent increase compared to June last year.
