Automotive Numbers


Industrial Units



over 500

Autoparts Companies

1.3 milion

Direct and Indirect Jobs


of the Country's Industrial GDP

Automotive Sector in Brazil

Brazil is the largest market and the largest automotive producer in South America, accounting for 50% of all types of vehicles sold in the region in 2018. The Brazilian automotive industry is showing a continuous growth, with a 2.3% growth in production, reaching 2.94 mi vehicles in 2019. In 2020, the production is expected to grow 7.3%, reaching 3.16 million units. 

The domestic market, the 6th in the world for automotive, and Brazil' strong export vocation are two of the major assets responsible for holding the country as one of the top ten automotive producers in recent years. In the last 10 years, 16 new industrial units were installed in Brazil, from which 8 belong to companies that still did not have any industrial unit in the country. In this period, companies already installed in Brazil received the equivalent to US$29 billion in investments provided by their matrices, resources that were applied in new products, technologies and industries. Brazil has solid, modern and attractive automotive industries in addition to an economic scenario that supports scale and predictability.


Sector Highlights

  • Among the top 10 world automotive markets
  • A fleet of over 40 million vehicles
  • Continuous growth in the number of vehicles - a growth of 77% in 10 years, until 2018
  • The 4 major OEMs installed in Brazil have invested around R$20 billions in the last years
  • Rota 2030 - the government program for the automotive sector provides predictability and legal security for investments in the long term

Brazil is the 8th world vehicle producer and has the 6th largest market for automotive industries, offering a highly developed auto market, which includes the presence of the world’s leading motor vehicle manufacturers across a wide range of segments. Few other countries have such an extensive list of manufacturers as Brazil does and the country is ready to be next destination of your company.

Among the 3 majors producers in Latin America, Brazil is responsible for:


4 in 10 vehicles


and accounts for


1/2 of sales in the region


Brazil has a strong automotive supply chain, with local producers encompassing an extensive list of products, such as car bodies and cables, electric and electronic components, suspension and steering systems, brakes, engines, transmission systems, and so on. Brazil has several industrial units specialized in producing such parts. 

The revenue composition of the auto parts industry splits between Original Equipment Manufacturers (OEMs) (63.1%), Aftermarket (19.2%), Exports (13.9%) and Intra-sector (3.8%). Production is concentrated in the Southeast and South regions, and, mostly recently, in the Northeast of Brazil. More than half of the 473 member companies of Sindipeças (National Automotive Vehicle Components Industry) have foreign capital in their stock composition, which reflects the country´s openness to foreign investments.

EPE (Energy Research Company) projects that light electric vehicles in Brazil will triple till 2050, reaching 130M units, out of which 11.9M being fully electric vehicles. There are increasing incentives and initiatives to develop electric mobility in the country and a great potential for public and inter-city transportation.


At the federal level, in 2015 the Brazilian government has conceded a 100% import tax exemption for fully electric models with a range of at least 80 km and an aliquot between 0% and 7% out of a total of 35% for hybrid models depending on their size and efficiency. Additionally, in 2018, it reduced the IPI (tax on industrialized products) for hybrid and electric vehicles according to energy efficiency and differences in the mass in running order.

In November 2018, the Brazilian government approved the Decree-Law Rota 2030 - Mobility and Logistics Program, which establishes the requirements for the commercialization of vehicles in Brazil, setting goals for energy efficiency and vehicle safety. The program also provides incentives for R&D investments in priority activities (connectivity, industry 4.0, electrification, among others). The goal is to integrate the Brazilian automotive industry in global value chains, increasing its competitiveness in the production of the main automotive systems and global project development capacity.


Investments in the Automotive Industry and the Covid-19 Crisis.

Investments in the Automotive Industry and the Covid-19 Crisis.

Janaina Melo and Gabriel Zimmer, both investment officers at Apex-Brasil, would like to share information about the automotive industry in Brazil and opportunities for FDI in the context of the coronavirus crisis.

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Apex-Brasil supports auto companies that are not yet in Brazil and companies that are already established here. We also provide services for those looking for innovation development in Brazil.