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Brazil, Colombia Renew 2026 Free Trade Quota

News: South America/Brazil

Home » News » Regions » South America/Brazil

2025-11-17

Brazil, Colombia Renew 2026 Free Trade Quota

Fabio Ferraresi
Fabio Ferraresi
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

Read More»
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.

Read More»
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

2025-10-19

Mahindra Starts Construction of AG Equipment Plant

Fabio Ferraresi
Fabio Ferraresi
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

Stellantis Produces Dakota Pickup in Argentina

Fabio Ferraresi

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.”

Source: Automotive Business     Read The Article

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

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

VW Completes Plant Updates for Mid-compact Pickup

Fabio Ferraresi

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.

Source: Automotive Business      Read The Article

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

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

Cummins Brazil Introduces QSF 4.5 Engine

Fabio Ferraresi

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.

Read More»
Categories: Central/South America, Industrial, Off-Highway Equipment, Production, South America/Brazil
Office: Brazil Office

Iveco Daily Multifuel Concept Runs on Several Fuels

Fabio Ferraresi

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.

Read More»
Categories: Central/South America, Commercial Vehicles, Emissions, eMobility, South America/Brazil
Office: Brazil Office

2025-09-13

Brazil Vehicle Exports Hit Highest Level in Seven Years

Fabio Ferraresi
Fabio Ferraresi
Fabio Ferraresi

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

 Source: Automotive Business

Read More»
Categories: Central/South America, Passenger Cars, Minivans, and SUVs, Production, South America/Brazil
Office: Brazil Office

August Brazil Truck Production Below 2024

Fabio Ferraresi

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%.

Read More»
Categories: Central/South America, Commercial Vehicles, Production, South America/Brazil
Office: Brazil Office

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