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South America Automotive Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

Product Code : MDAT00122399
Survey : Mordor Intelligence
Publish On : 12, August, 2022
Category : Automotive and Transportation
Study Area : North America (U.S. and Others), Europe (Germany, France, U.K. and Others), Asia-Pacific (Japan, China, India and Others), Rest of World (Brazil, Rest of Latin America, Middle East & Others)
Report format : PDF
Sales price option (consumption tax not included)
Single User USD4950 / Question Form
5 User USD6750 / Question Form
Enterprise User USD9000 / Question Form
 - OEM (by Vehicle Brands)
- Auto Parts and Components
- Auto Financing Suppliers

[Report Description]

The South American automotive market is anticipated to register a CAGR of around 5% during the forecast period, 2021-2026.

South America, a region with countries with the influence of bad national politics, lack of proper education in some sub-regions, and poverty prevailing in some countries, was severely hit by the COVID-19 pandemic. The automotive industry of the region, which relies on imports and exports for revenue generation considerably, saw a dip in the finances due to the global transport halt. During 2013-2015, South America, especially Brazil and Argentina, witnessed a huge cash influx into the automotive industry due to national politics and social movements. This cash inflow was halted due to COVID-19. With the lockdown relaxation worldwide, the industry is looking to get back up the ladder, moving toward more sustainability.

Key Highlights

  • The prime factors driving the growth for the sales and demand for passenger cars were lower interest rates and improving consumer confidence. For instance, the exports and sales of passenger cars in 2018, compared with the first four months of 2017, witnessed an increase of 50.4% and 9.9%, respectively.

  • However, the automotive market in South America is highly vulnerable to the instability of social and political policies, as countries, like Venezuela, are experiencing a slowdown in their economic growth, which drastically impacted the country s automotive industry growth.

  • In Brazil, with the improvement in the economy (directly influencing consumer confidence) and rise in credit availability to support the country’s light-vehicle market, growing investment in the country, and strong export demand, the country has been witnessing positive growth in the demand and sales of vehicles.

Key Market Trends

Brazil, Argentina, Chile, and Ecuador to Drive the Market

The passenger car market in South America witnessed considerable numbers in 2020 despite the pandemic. Although the numbers indicate a 216.6% dip in the sales of all types of vehicles in all the countries of the region combined in 2020, considering the pandemic and the pace at which the economy is set to bounce back, with the region being a hotspot for potential investors from all over the world, the industry is expected to recover with good numbers in the coming quarters.

The Brazilian automotive industry’s output fell consistently, following the economic recession that affected production and sales alike. However, the industry is now gathering momentum due to the improvement of the economic indexes directly influencing consumer confidence and increased credit availability to support the country’s light-vehicle market and strong export demand from the South American countries.

With Brazil being a major player in automotive spares export, the number of light and heavy commercial vehicles required for transport is bound to skyrocket in the coming times. This can potentially increase the production and sales of transport vehicles and bring stability to the market economy.

Argentina is the second-largest passenger car market in South America. Although the country witnessed a drop of 18% in sales from 2019 to 2020, strong incentive campaigns by OEMs are expected to boost the sales of passenger cars over the forecast period.

With the industry moving toward a more sustainable production, the research being carried into the electrification of automotive looks promising because the region is a hot investment zone, owing to the growing nature of the market, which can bring in a lot of money and improve the market conditions.

Brazilian Automotive Sector is expeted to thrive.

Brazil is expected to be among the top ten countries with the biggest online automotive aftermarket and part sales globally. The country is forecast to reach a share of 8.9% of this segment by 2026.

Market protection in the form of tariffs and quotas on imports prompted companies to open and/or expand automotive production facilities within Brazil, which helped stimulate the local economy. The Brazilian automotive industry had a production capacity of about 66% of South American automotive production. This capability helps in generating jobs for more than 130 thousand Brazilians. Brazil produced about 2.7 million passenger cars in 2020. Fiat Chrysler Automobiles, General Motors, Renault-Nissan partnership, and Volkswagen Group are some of the leading manufacturers in the light vehicle segment, based on market share. The Brazilian economy started bouncing back in recent years with motor vehicle sales. Vehicle sales amounted to 1.7 million units in 2020. Volkswagen and Renault-Nissan Group vehicles remain the most used vehicles in the passenger cars sector of the country. Recent data shows that the automotive multinational corporation FCA, which markets Fiat, Jeep, and Chrysler, has the highest number of dealerships throughout the Brazilian territory, followed by Ford and Volkswagen. Chevrolet and Volkswagen were also among the most popular car makers, according to Brazilian consumers. In the passenger car segment, General Motors was the brand with the largest market share in Brazil, while the light commercial vehicle market was led by FCA.

Competitive Landscape

A few major manufacturers in the South American automotive market include General Motors, Toyota Motor Corporation, Hyundai Motor Corporation, and Volkswagen AG. Between 2019 and 2020, the GM Group, consisting the General Motors and Chevrolet, saw the majority of sales in the market, with around 647,000 units sold, closely followed by the Volkswagen Group (Volkswagen, Audi, and Porsche) with approximately 510,000 units.

Luxury carmakers, like JLR, are investing in the country, which may boost the country’s automotive industry.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format

  • 3 months of analyst support

1.1 Study Assumptions
1.2 Scope of the Study



4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter s Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry

5.1 By Vehicle Type
5.1.1 Internal Combustion (IC) Engine Passenger Cars Commercial Vehicles
5.1.2 E-mobility
5.2 By Parts and Components Type
5.2.1 Powertrain
5.2.2 Exterior and Interior
5.2.3 Tires
5.3 By Automotive Service Industry (Qualitative Information)
5.3.1 OEM Service Center
5.3.2 Independent Aftermarket Service Center
5.4 By Financing Industry (Qualitative Information)
5.4.1 Banks
5.4.2 Automotive Financing Industry
5.5 Country
5.5.1 Brazil
5.5.2 Argentina
5.5.3 Chile
5.5.4 Peru
5.5.5 Rest of South America

6.1 Vendor Market Share
6.1.1 OEM (by Vehicle Brands) - Market Share Analysis
6.1.2 Auto Parts and Components Suppliers - Market Share Analysis
6.2 Company Profiles*
6.2.1 OEM (by Vehicle Brands) General Motors Toyota Motor Corp. Volkswagen AG Fiat Chrysler Automobiles NV Ford Motor Company Honda Motor Company Ltd Hyundai Motor Company Nissan Motor Company Ltd Groupe Renault Daimler AG Kia Motor Corporation
6.2.2 Auto Parts and Components Robert Bosch GmbH Continental AG Denso Corporation Aptiv PLC HELLA KGaA Hueck & Co. Webasto SE Valeo Group
6.2.3 Auto Financing Suppliers Banks Santander Bank Banco Bilbao Vizcaya Argentaria (BBVA) Itaú Unibanco Automotive Financing Industry Toyota Financial Services GM Financial (Banco GMAC) VW Financial Services



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