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São Paulo– This year’s Paving Expo, held Sept. 23–25 at São Paulo’s Distrito Anhembi, marked another record edition for Latin America’s largest event dedicated to paving, road construction, and infrastructure technologies.
With all exhibition space sold out, more than 300 companies showcased their solutions to an audience expected to surpass 20,000 industry professionals, while the technical congress (Paving Conference) attracted some 4,000 delegates.
Mahindra Brazil has started construction of its new manufacturing facility in Dois Irmãos (RS), supported by an investment of around US$ 17.5 million over five years. The new plant will cover 89,000 m², with 38,568 m² built and an expansion potential of 24,000 m², tripling production capacity from 3,000 to 9,000 tractors per year. The project is expected to create about 300 direct and indirect jobs and marks Mahindra’s transition toward a more localized industrial base in Brazil.
PSR Analysis. Mahindra’s new plant marks a strategic localization milestone: the company is investing in production capacity, as well as in brand legitimacy. By positioning itself as a Brazilian manufacturer with Indian heritage, Mahindra mitigates the “low-cost foreign brand” perception and strengthens its long-term competitive base in the Southern Cone agricultural machinery market. It also brings opportunities for components suppliers to increase the local content in the equipment and allow access to funding lines like FINAME. PSR
Fabio Ferraresi is Director, Business Development, South America, for Power Systems Research
Stellantis has started production of the Ram Dakota pickup at its plant in Córdoba, Argentina, with market launch in Brazil expected for 2026. The model shares its platform with the Fiat Titano, which in turn is derived from the Changan Kaicene F70 architecture, also marketed as the Peugeot Landtrek.
The Dakota will use the 2.2-liter Multijet turbodiesel engine produced in Argentina and will be positioned between the Rampage and the Ram 1500 in the regional lineup. The new pickup reinforces Stellantis’ regional manufacturing integration, as both the vehicle and its powertrain are produced within Mercosur. According to Herlander Zola, the company’s new President for South America, “this launch is a concrete example of how local integration drives regional competitiveness.”
PSR Analysis. The Ram Dakota marks a key move in Stellantis’ regional integration strategy, combining vehicle and engine production in Argentina to boost scale efficiency and cost competitiveness within Mercosur. Positioned between the Rampage and the Ram 1500, it strengthens Stellantis’ mid-size pickup lineup and leverages shared architectures across brands and partners to reduce development costs. The model also supports Ram’s brand expansion in South America’s one-ton pickup segment, challenging Toyota, Ford, and VW with a more localized and accessible product. PSR
Fabio Ferraresi is Director, Business Development, South America, for Power Systems Research
Volkswagen has completed the adaptation of its São José dos Pinhais (PR) plant to produce a new mid-compact pickup, positioned to compete directly with Fiat Toro. The factory, which also builds the T-Cross, resumed operations in October after modernization works and now has capacity for about 125 vehicles per day. The company confirmed that supplier sourcing and integration are already defined, and pre-series units are expected in early 2026, with full production ramp-up to follow.
PSR Analysis. Volkswagen’s new pickup project aligns with the strong growth of mid-size and lifestyle-oriented pickups, a segment that has been capturing share from heavier one-ton trucks and compact SUVs. By positioning its model between the Saveiro and Amarok, VW targets customers seeking passenger-car comfort with light-commercial versatility, a trend led by Fiat Toro and Chevrolet Montana.
Local production in Paraná enhances cost competitiveness and supply-chain agility, while allowing VW to re-enter one of the fastest-growing and most profitable vehicle segments in Brazil, crucial for sustaining volume and profitability in the post-sedan era. PSR
Fabio Ferraresi is Director, Business Development, South America, for Power Systems Research
Cummins Brazil has introduced the QSF 4.5 electronic diesel engine for soil and asphalt compaction applications, produced at its Guarulhos (SP) plant since April 2024 and developed by local engineering teams.
The 4.5-liter engine delivers 97 kW (130 hp @ 2200 rpm) and will power Dynapac’s CA25, CA30, and CA35 compactors starting in 2026, in addition to the CP28 pneumatic roller already using the same platform.
Iveco has unveiled the Daily Multifuel concept, a light commercial vehicle capable of operating on ethanol, CNG, or biomethane. It’s positioned as a low-emission alternative to diesel for urban cargo transport. Tested in 3.5- and 7.2-ton versions, the model uses the FPT Industrial F1C 3-liter Otto-cycle engine, rated at 100 kW (136 hp) and 35.7 kgfm of torque. The engine integrates dual fuel-injection systems — one for liquids such as ethanol and another for gaseous fuels — and was developed in cooperation with Unesp, UFPA, and UNIFEI.
By the month of August 2025, Brazil’s automotive exports reached 57,100 vehicles, marking the highest monthly level since June 2018. This figure represents a 19.3% increase over July and a 49.3% increase compared to August 2024. Argentina played a pivotal role, accounting for 59% of the country’s annual exports.
From January to August, total exports summed 313,300 units, up 12.1% compared to the same period in 2024. Production stood at 247,000 vehicles in August, nearly flat from July (+3%) but down 4.8% year-on-year. Overall production in the year reached 1.743 million units, an increase of 6% over 2024. Domestic market performance remained largely stable, with 225,400 vehicle registrations in August, though the average daily sales were slightly below 2024 levels at 10.7 thousand per day, raising caution for the final quarter
Brazilian truck production declined in August 2025, with factories manufacturing 10,096 units, down 16.3% from July (12,058 units) and down 22.9% compared to August 2024 (13,101 units). Over the first eight months of 2025, accumulated production was 88,525 trucks, slightly lower by 1% compared to the same period in 2024 (89,401 vehicles).
Domestic truck sales also fell sharply: 8,900 trucks were licensed in August, 15.9% fewer than July, and 22.6% fewer than August 2024. High interest rates are being cited as a main cause, especially affecting heavy trucks, which account for nearly half the truck market and saw a production drop exceeding 19%.
On Sept. 2, 2025, the biggest city in Americas with biggest bus fleet, started on the path to use of biomethane as fuel in the city’s public transport fleet and garbage collection vehicles. The initiative sets rules for fuel acquisition and introduces the gradual adoption of biomethane-powered vehicles. City officials emphasize that biomethane offers lower operating and acquisition costs compared to electric buses and avoids the need for large-scale charging infrastructure.
Hitachi Construction Machinery Co., Ltd. plans to establish a regional headquarters in Chile to oversee and expand its operations in Latin America. The move shifts the focus from solely selling new machinery to localizing parts supply and service support, enabling faster responses to dealers and customers.
Following the end of its joint venture with Deere & Company in 2022, the company has been independently growing in the Americas, initially prioritizing North America. The decision for a Chile-based HQ reflects cultural and operational differences from North America, as well as Chile’s importance in the mining dump truck market.
