Brazil’s auto production remained in decline at the start of 2026, but the pace of contraction slowed compared with the end of last year, according to the latest month-over-month data updated on 6 February 2026.
In January 2026, auto output fell by 13.5% compared with the previous month. While still a sharp drop, it marks an improvement from December 2025, when production plunged by 15.8% versus November. The figures suggest that, although the sector continues to face significant headwinds, the worst of the month-to-month contraction may be moderating.
The data, measured on a month-over-month basis, compare the change in production each month to the immediately preceding one. December’s -15.8% reading reflected a deeper contraction relative to November, while January’s -13.5% result points to a slightly less severe pullback as the industry moves into 2026.
