FX.co ★ Brazil Auto Sales Drop Sharply in January

In January 2026, Brazil experienced a significant 39% decrease in new car sales compared to the previous month, with total sales reaching 70.5 thousand units. The registration of passenger cars saw a substantial decline of 40.6%, totaling 125.2 thousand units. Concurrently, registrations of light commercial vehicles decreased by 33.4% to 37.7 thousand units. The market for trucks contracted as well, with sales dropping by 34.5% to 6.4 thousand units, while bus sales plummeted by 43.6% to just 1,180 units. Notably, electrified vehicles reached a record high, comprising 16.8% of all registrations in January. On an annual basis, the domestic automotive market began 2026 on stable footing, with sales nearly unchanged (-0.4%) compared to January 2025, despite having one fewer business day within the month. Meanwhile, in international markets, the export of passenger cars fell by 18.3% year-over-year, largely due to a 5% reduction in shipments to Argentina.