Brazil’S Vehicle Exports Surge In April As Regional Demand Drives Industry Growth

(MENAFN- The Rio Times) Brazil's auto industry, according to data from the National Association of Motor Vehicle Manufacturers (Anfavea), posted a sharp 69.3% year-on-year rise in vehicle exports in April 2025.

The country shipped 46,300 vehicles abroad, mainly to South American neighbors.

This surge marks the highest monthly export volume in six years and reflects a rebound in regional demand, particularly from Argentina, which received over half of Brazil's exported vehicles in the first quarter.

Production also increased . Factories turned out 228,240 vehicles in April, up 20.1% from March and 2.8% over April 2024.

Year-to-date production reached 811,200 units, a 6.7% rise compared to the same period last year.



Despite this, domestic sales fell 5.5% year-on-year in April to 208,700 units, a sign of persistent high interest rates and tight credit. However, sales grew 6.7% from March, suggesting some resilience in local demand.

Argentina's recovery played a pivotal role in export growth. The country imported 67,630 vehicles from Brazil in the first quarter, a 120% jump from a year earlier.
Brazil's Vehicle Exports Surge as Regional Demand Drives Industry Growth
Argentine demand accounted for 58% of Brazil's auto exports, but this heavy reliance exposes Brazil to regional volatility.

The Argentine market's unpredictability remains a risk for Brazilian manufacturers, who must balance export ambitions with the need for more diverse trading partners.

Imports into Brazil, especially of electric and hybrid vehicles, have also grown. In 2024, imports rose 141%, with electrified models making up over 90% of the total.



Chinese automaker BYD led this segment, reflecting the rapid shift toward electrification in Brazil. Still, imported vehicles only represented 4.2% of all car sales.

Industry leaders warn that high borrowing costs could soon impact truck and light vehicle sales. The central bank's interest rate stands at 14.75%, with inflation at 5.5%, well above the 3% target.

These factors, along with global trade uncertainties and tariff disputes, create a fragile equilibrium for the sector.

Brazil's auto industry stands at a crossroads. Export momentum offers hope, but domestic and regional risks persist.

The sector's ability to adapt to changing demand, both at home and abroad, will determine its path forward.

All figures and claims in this report are based on official industry data and reflect the current realities of Brazil's automotive market.

MENAFN09052025007421016031ID1109528123