Brazil automotive sector sees best September production since 2014

Brazil's automotive sector reported strong performance in September, with vehicle production reaching 268,300 units, the highest for the month since 2014. This represents a 10.2% increase compared to the same period last year. However, Anfavea noted that only 50,000 of the additional units produced were fully manufactured domestically, with the remainder involving CKD and SKD assembly of imported kits.

Vehicle registrations also hit a significant milestone, with Fenabrave reporting 509,686 new vehicle registrations in September, an 8.32% increase year-over-year. The SUV segment continues to dominate, with over 1 million units sold in the period. Additionally, the market for light electrified vehicles surpassed 1 million cumulative sales in Brazil, driven by a 76.9% increase in charging infrastructure over the last 12 months.

Despite domestic growth, the sector faces challenges in exports, which have remained stagnant below 40,000 units monthly due to economic conditions in Argentina and increased competition from Chinese and Mexican models. Furthermore, while vehicle financing reached its best August in 15 years, individual delinquency rates have reached their highest levels since 2012.