Vehicle exports from Brazil grew by nearly 41% in the first quarter of 2025. Brazil automotive industry shipped 115,600 units abroad, compared to 82,200 vehicles during the same period in 2024. Only in March, 38,900 vehicles were exported, up 19% year-over-year.
The increase was boosted by higher export volumes to Argentina, which accounted for 58% of Brazil’s vehicle exports in Q1 2025. A total of 67,630 vehicles were sent to Argentina— up 120% from the same period last year.
Mexico remains the second-largest export destination for Brazilian-made vehicles and despite the positive overall export performance, Anfavea expressed concern over Brazil’s declining share in other Latin American markets. U.S. tariffs on Mexican goods could indirectly harm Brazil, as Mexico may redirect its automotive exports to countries with which it holds bilateral or free trade agreements, increasing competition for Brazilian vehicles.
Source: Automotive Business Read The Article
PSR Analysis. If U.S. tariffs are imposed on Mexican vehicles, Mexico may redirect exports to Latin American countries, increasing competition for Brazil—especially where Mexico holds free trade agreements. Although Argentina currently drives Brazil’s export growth, this overreliance poses risks. Anfavea recognizes the threat. However, its stance remains diagnostic rather than strategic, indicating a need for greater institutional alignment with government trade policy to protect Brazil’s automotive export competitiveness. PSR
