Central/South America | Power Systems Research

2026-01-25

Government Program To Help Truck Industry

In January 2026, the Brazilian federal government launched the Move Brazil Program, a credit support initiative totaling approximately USD 2.0 billion. The program aims to support the domestic truck manufacturing industry and stimulate fleet renewal amid a sharp downturn in heavy-duty vehicle demand.

Financing will be provided through BNDES with annual interest rates between 13% and 14%, grace periods of up to six months, and repayment terms of up to five years, capped at approximately USD 10 million per beneficiary. Eligible beneficiaries include independent truck drivers, cooperatives, transport companies, and large fleet operators, with 10% of total funding reserved for independents and cooperatives.

Financing is restricted to new trucks manufactured in Brazil and compliant with Proconve P8 emission standards, as well as used trucks (model year 2012 onward) meeting Proconve P7 requirements and local content criteria. The program will be available for six months and is positioned as a short-term measure to mitigate layoffs and production cuts in the heavy truck segment.

Categories: Central/South America, Commercial Vehicles, Financial, Legislation, South America/Brazil

Office: Brazil Office

2026 Brazilian Vehicle Market Projected To Grow 3%

Fabio Ferraresi

Brazil’s vehicle distribution association Fenabrave projects that the total new vehicle market in 2026 will grow by approximately 3%, reaching around 2.7–2.8 million units in total sales across all segments compared with 2025 performance. This projection includes ~3% increases in passenger cars and light commercial vehicles, roughly 2.6–2.7 million units, and ~3.5% growth in truck registrations. Sales of buses are also forecast to rise ~3%.

The outlook is supported by expectations of improved credit availability, federal support programs such as Carro Sustentável and Move Brazil, and a strong commodities export environment, which bolsters freight demand. The heavy truck segment, which faced a steep decline in 2025, is expected to contribute to overall market expansion. Fenabrave’s forecast assumes modest macroeconomic improvement and continued easing of credit conditions.

Categories: Central/South America, Commercial Vehicles, Off-Highway Equipment, Passenger Cars, Minivans, and SUVs, Sales, South America/Brazil

Office: Brazil Office

2025-12-08

Eletra Starts In-House BEV Bus Chassis Assembly

Fabio Ferraresi

Eletra announced an investment of BRL 40 million (approximately US$ 7 million) to expand its factory in São Bernardo do Campo (SP) and build a new in-house chassis assembly line. The initiative will transform Eletra into a full-fledged chassis manufacturer, rather than relying solely on chassis supplied by partners.

Categories: Central/South America, Commercial Vehicles, Production

Office: Brazil Office

Yanmar Triples Indaiatuba Factory Size

Fabio Ferraresi

Yanmar announced an investment of US$ 50 million, to build a manufacturing plant in Indaiatuba, São Paulo. The facility will occupy 140,000 square meters — triple the area of the current unit — with phased implementation through 2030; the first 36,000 square meter unit is planned to begin operations in 2027.

With this expansion, the company expects to increase annual tractor production from 5,000 to 7,000 units, centralize industrial, administrative and logistics operations, deploy automated assembly lines with torque control, streamline logistics, and integrate sustainability measures such as natural lighting, photovoltaic energy and automated lighting. The project should generate around 100 direct and indirect jobs by 2029.

Source: Agrimídia Read The Article

Categories: Central/South America, Production

Office: Brazil Office

Volvo Launches Dump Truck with 55-Ton Capacity

Fabio Ferraresi

Volvo CE has introduced in Brazil the latest generation of its largest articulated dump truck, the A60. The updated model offers a payload capacity of 55 000 kg and a dump body volume of 33.6 cubic meters — the highest among articulated haulers available locally. It is powered by the Volvo D16J engine, delivering 470 kW (≈ 630 hp) and 2,960 Nm torque, optimized for heavy off-road operations.

Compared with the previous generation, the A60 delivers a 15% gain in fuel efficiency and 5% increase in productivity per loading cycle. The redesign includes improvements in drivetrain, transmission, traction control and operator ergonomics, reflecting Volvo’s renewed lineup update for articulated trucks in Brazil.

Source: Automotive Business Read The Article

PSR Analysis: The upgraded A60 meets rising demand from mining, quarrying and large-scale infrastructure sectors by combining high payload, improved fuel economy and proven off-road capability, translating into lower operating cost per ton transported. Its enhanced drivetrain, traction control and stability — crucial in challenging terrain — should increase uptime and reliability for high-utilization fleets. PSR

Fabio Ferraresi is Director, Business Development, South America, for Power Systems Research

Categories: Central/South America, Commercial Vehicles, Off-Highway Equipment, Production, South America/Brazil

Office: Brazil Office

2025-11-17

Brazil, Colombia Renew 2026 Free Trade Quota

Fabio Ferraresi

Brazil and Colombia have agreed to extend for 12 months the bilateral automotive quota allowing duty-free export of up to 50,000 Brazilian vehicles per year. The mechanism, which had expired in September, risked reinstating a 16.1% import tariff on Brazilian ICE and flex-fuel passenger vehicles entering the Colombian market from 2025 onward. From January to September 2024, Colombia remained Brazil’s third-largest automotive export destination, receiving 38,500 units (+55.2% YoY), below but close to the annual quota.

Source: Autodata Read The Article

Categories: Central/South America, Economics, Passenger Cars, Minivans, and SUVs, South America/Brazil

Office: Brazil Office

Stellantis Exports Ram Rampage from Brazil to Europe

Fabio Ferraresi

Stellantis has begun exporting the Brazil-made Ram Rampage to Europe, marking the first Ram vehicle developed and manufactured outside North America to reach the continent.

Categories: Central/South America, Commercial Vehicles, Production, South America/Brazil

Office: Brazil Office

Ford To Build Hybrid Ranger with Flex-Fuel Engine

Fabio Ferraresi

Ford has confirmed that the Ranger PHEV will be launched in Brazil in 2027 with a market-specific configuration: a 2.3-liter turbo flex-fuel engine combined with an electric motor and a rechargeable battery.

The model, already available in Europe with an 11.8 kWh battery and a 75 kW electric motor, delivers combined torque around 70 kgfm and maintains the 3,499-kg towing capacity of conventional versions. For Brazil, the flex adaptation is expected to raise system output above the 278 hp declared for the gasoline-only European version.

The PHEV variant will be produced in South America—most likely at Ford’s Pacheco plant in Argentina—and will feature exclusive 18-inch wheels, lateral charging port, PHEV badging and the Pro Power Onboard auxiliary power system. Ford will thus become the first automaker to offer a flex-fuel plug-in hybrid midsize pickup in the Brazilian market.

Source: O Estado de São Paulo Read The Article

PSR Analysis. The introduction of a flex-fuel PHEV Ranger adds a new technological layer to Brazil’s midsize pickup segment, reinforcing Ford’s electrification strategy while leveraging the country’s ethanol advantage. The program also expands regional industrial capability, as the PHEV will join other Ranger versions produced in Argentina.

Although the Ranger PHEV may set a new benchmark for performance and efficiency, its competitive impact will hinge on pricing, battery supply, and customer acceptance relative to upcoming electrified rivals such as BYD’s Shark and the expected hybrid Amarok derivatives. PSR

Fabio Ferraresi is Director, Business Development, South America, for Power Systems Research

Categories: Central/South America, Commercial Vehicles, Production, South America/Brazil

Office: Brazil Office

China Pushes Into South American Market

Jack Hao

On Nov. 4, 2025, Lingong Heavy Machinery’s Brazilian subsidiary, LGMG Machinery Brazil Ltda., promoted its globalization strategy in the South American market with the celebration of its plant in Indaiatuba, São Paulo State, Brazil. This move signifies a deepening of Lingong Heavy Machinery’s South American expansion and marks an important milestone in China’s industrial advancement.

The establishment of the Brazilian subsidiary carries multiple strategic advantages for Lingong Heavy Machinery, providing a robust platform for serving local Brazilian customers through localized operations. It addresses customer needs with customized solutions and develops confidence in Brazilian customers by ensuring product supply stability through a localized spare parts warehouse, improving after-sales service, and enhancing technical support.

Categories: Central/South America, Greater China, Industrial, Production

Office: China Office

2025-10-19

Mahindra Starts Construction of AG Equipment Plant

Fabio Ferraresi

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.

Source: Cultivar Read The Article

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

Categories: Agricultural, Central/South America, Production, South America/Brazil

Office: Brazil Office

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