With the end of the first half of the year and taking into account better-than-expected auto sales in the domestic market, the Brazilian association of automobile manufacturers ANFAVEA has revised upward the forecasts published in January. Brazil is now expected to surpass 3 million registered vehicles in 2026, a level not reached since 2014. If this forecast is confirmed, growth will be 11.7 percent over 2025, significantly higher than the 2.7 percent forecast at the beginning of the year.
Car production in Brazil reached 246,000 units (passenger cars, light commercial vehicles, trucks and buses) in June, down 3 percent from May 2026's 253,500 units.
Domestic vehicle sales fell 0.8 percent to 272,500 units, while exports fell 1.9 percent to 36,700 units.
But compared with June 2025, in June 2026, production increased by 17.2 percent, sales by domestic market increased by 28.0 percent, and exports decreased by 26.7 percent.
When comparing the first six months of 2026 with the same period in 2025, production increased by 8.8 percent to 1.372 million units, sales in the domestic market increased by
ANFAVEA attributes the decline in exports to a decline in demand from Argentina and competition from Chinese cars in most traditional destinations in Latin America.
