FX.co ★ Brazil New Vehicle Sales Grow for the 2nd Month

In May 2025, Brazil saw an 8.1% rise in new vehicle sales from the previous month, totaling 214,700 units. This follows a 6.7% increase in April. Despite the challenges of high interest rates and uncertainties surrounding US tariff decisions, the market remains robust, buoyed by a rebound in credit availability and strong demand from rental companies. Additionally, vehicle exports rose by 11.3% in April, reaching 51,500 units, with Argentina being a key growth market. However, concerns are mounting in the industry over the influx of Chinese vehicles into Brazil. These vehicles benefit from substantially lower taxes compared to other countries, creating a problematic competitive imbalance.