Mathilde Carlier
Research Expert covering transportation and logistics
Automotive industry in Latin America - Statistics & Facts
In March 2024, Stellantis announced a historic investment of 5.6 billion euros into its South American vehicle production activities, including in the development of its biofuel and flex fuel models, which run partly on ethanol. This investment will shape the company’s operations in Brazil and the rest of the region, but Stellantis is not the only automotive company to invest in Latin America. Mexico and Brazil have the most developed automotive sectors – Mexico produced over four million motor vehicles in 2023, while the production of vehicles in Brazil added up to around 2.3 million units that year. In fact, these two Latin American countries ranked amongst the largest motor vehicle producers worldwide.
In contrast, Argentina’s automotive sector continued to struggle against a slow vehicle sales growth after the automotive market was cut down by nearly half between 2018 and 2019. The Chilean automotive market also recorded difficulties in 2023. While sales in the country had quickly increased after the pandemic drop, 2023 sales were the fourth-lowest recorded since 2011. With this effect aggravated by the semiconductor shortage, a regional recovery may be still far on the horizon.
While Latin America is still in the early stages of adopting electric vehicles, electric and hybrid vehicle sales have been steadily on the rise across the region, and this trend is tipped to accelerate as governments transition towards cleaner transport. Chinese brands have started to use this momentum to insert themselves in the Latin American market. This strategy has been met with success: BYD, the global electric vehicle leader, ranked in the top five hybrid and electric brands in Colombia, Chile, and Brazil in 2023.
Economic uncertainty has led to national differences within the region, with some countries’ automotive sectors recovering at a faster pace than others’. However, Latin America’s growing electric vehicle market is increasingly attracting Chinese automakers. As the region received increased automotive investments focusing on alternative fuels, this progress could be multiplied in the following years.
A consumer market in crisis
In 2023, Latin American vehicle sales had still not bounced back from the drop it recorded due to the COVID-19 pandemic, in contrast with the global market. However, most markets in the region grew in 2023, except for Chile and Colombia. The economic uncertainty in the region, which had the second-highest inflation rate worldwide, did not seem to impact consumers’ purchase intentions in some of the key markets. A Statista Consumer Insights survey from October 2023 to September 2024 found that most residents in Brazil and Mexico intended to buy a car in the 12 months following the survey, with new cars being the most popular option.In contrast, Argentina’s automotive sector continued to struggle against a slow vehicle sales growth after the automotive market was cut down by nearly half between 2018 and 2019. The Chilean automotive market also recorded difficulties in 2023. While sales in the country had quickly increased after the pandemic drop, 2023 sales were the fourth-lowest recorded since 2011. With this effect aggravated by the semiconductor shortage, a regional recovery may be still far on the horizon.
Disruptions in the electric vehicle market
The overall automotive market in the region remained fairly stable in 2023: Chevrolet still had the best-selling car model in the region in 2023. The brand’s parent company, U.S.-based General Motors, was the third market leader for light vehicles in Brazil that year. In most countries of the region, other established brands and large automotive groups topped the rankings, including Toyota in Argentina and Nissan in Mexico. However, the status quo has been disrupted when looking at the region’s electric vehicle market.While Latin America is still in the early stages of adopting electric vehicles, electric and hybrid vehicle sales have been steadily on the rise across the region, and this trend is tipped to accelerate as governments transition towards cleaner transport. Chinese brands have started to use this momentum to insert themselves in the Latin American market. This strategy has been met with success: BYD, the global electric vehicle leader, ranked in the top five hybrid and electric brands in Colombia, Chile, and Brazil in 2023.
Economic uncertainty has led to national differences within the region, with some countries’ automotive sectors recovering at a faster pace than others’. However, Latin America’s growing electric vehicle market is increasingly attracting Chinese automakers. As the region received increased automotive investments focusing on alternative fuels, this progress could be multiplied in the following years.
