FX.co ★ Brazil Car Output Slips Again in December

In December 2025, Brazil experienced a 15.8% decrease in car production from the previous month, resulting in 184,500 units manufactured, a drop partly attributed to fewer working days. When compared to December 2024, there was a 3.9% year-on-year decline in automotive production. Over the course of the year, Brazilian manufacturers produced 2.65 million vehicles, reflecting a 3.5% increase from 2024, marking the industry's highest output since 2019, largely driven by light vehicles. Nevertheless, this output fell short of the manufacturers' projected 7.8% growth, primarily due to high interest rates and heightened competition from vehicle imports. Looking ahead, the industry association Anfavea projects a 3.7% increase in production for 2026, aiming to reach approximately 2.7 million units.