Latin America Automotive Industry Outlook 2024
Connected and Electrified Vehicles, New Business Models, and Increasing Competition Enable Growth Opportunities
04-Apr-2024
North America
Market Outlook
The Latin American automotive industry maintains its rising trend despite the severe effects of COVID-19 on local economies, international conflicts, inflation, exchange rates, and difficulties arising from credit accessibility.
With 4.8 million units sold in 2023, the Latin American automotive industry will likely grow 8.2% in 2024. However, the region has not reached pre-pandemic numbers, with 2023 sales numbers 10.7% lower than 2019. Mexico showed the most growth in the region, surpassing 2023 numbers by 24.4% and going from 1.1 million units to 1.4 million. Meanwhile, Colombia and Chile showed negative growth, with 29.9% and 26.5%, respectively.
This analysis covers multiple trends, including the rising penetration of Chinese original equipment manufacturers in the region, local production of hybrid and electric vehicles, powertrain diversification, expansion of connected vehicles, and new mobility models.
Frost & Sullivan expects the industry to grow 4.8% in 2024. Our estimations show that Colombia will likely lead growth in the region at 21.5%, translating into 187,500 units. Brazil, the largest market in Latin America, will likely sell 2.4 million units, recording 8% growth. In contrast, Argentina and Ecuador will experience a decrease in their total amount of light vehicle sales.
Why Is It Increasingly Difficult to Grow?
The Strategic Imperative 8™
The Impact of the Top 3 Strategic Imperatives on the Latin American Automotive Industry
Growth Opportunities Fuel the Growth Pipeline Engine™
Key Findings: A Recap of 2023
The 2023 Passenger Vehicle Industry: Forecast vs. Actual
Key Findings: Top 5 Predictions for 2024
Notable Regulations and Mandates: A Snapshot
Automotive Industry by Country
Top 10 Trends for 2024
Top 10 Economic Growth Opportunities
Global GDP Growth: Mild Global Growth Slowdown from 3% in 2023 to 2.6% in 2024 as Major Markets Lose Growth Momentum
Inflation and Interest Rates: Headline Inflation to Continue Declining; H2 2024 Shift Toward Rate Cuts for Advanced Markets
Currency Trajectory: Dollar to Remain Strong in H1 2024; Emerging Market Currencies to Receive Boost from Q3 2024 Onwards
Oil Industry: Q1 OPEC+ Oil Production Cuts; Non-OPEC Production to Increase
Labor Market: Moderate Unemployment Uptick; Positive Expectations Regarding Market Sentiment to Support Labor Hoarding
Critical Mineral Supplies: Need for Economic Resiliency will Bolster Cross-border and Cross-industry Partnerships
North America: Economic Slowdown amid Discretionary Spending Pullback and Elevated Interest Rates
Western Europe: Moderate Growth Pick-up as Inflation Headwinds Gradually Ease; Rebuilding Fiscal Buffers to Take Precedence
The Middle East: Economic Diversification to Limit the Pullback from a Slowdown in Global Oil Markets to Drive Non-oil Growth
Asia: Emerging Markets to Drive Growth Momentum; Fiscal Measures to Support Chinese Economic Recovery
List of Countries and Territories, 2024
Global GDP Growth Snapshot
LATAM: External Headwinds to Cause Exports and Investment Pullback; Argentina’s Growth Will Slow to 1.4% in 2024
Growth Opportunity: Fiscal Support to Benefit Infrastructure, Transportation; Green Energy and Mining Exports to Remain Robust amid Decarbonization Focus
List of Countries and Territories, 2024
Research Scope
Segmentation
Top Trends Driving the LATAM Automotive Industry
Trend 1: Powertrain Diversification
Trend 2: Chinese OEMs
Trend 3: Local Production of Hybrids and EVs
Trend 4: Expansion of CCs
Trend 5: Emergence of New Mobility Business Models
Service and Tech Roadmap
CASE Demand Matrix by Country
Automotive Sales by Country
Price Comparison Analysis
Segment Forecast
Argentina
Brazil
Chile
Colombia
Ecuador
Mexico
Peru
Uruguay
Conclusions and Outlook
Growth Opportunity 1: Vehicle Subscription Business Model
Growth Opportunity 1: Vehicle Subscription Business Model (continued)
Growth Opportunity 2: Connected Car Services
Growth Opportunity 2: Connected Car Services (continued)
Growth Opportunity 3: Expansion of Electrified Vehicles
Growth Opportunity 3: Expansion of Electrified Vehicles (continued)
Your Next Steps
Why Frost, Why Now?
List of Exhibits
Legal Disclaimer

- GDP Growth Rate, Select Markets, 2023–2024
- Automotive: Share of Hybrid and EV Sales in LV Sales by Country, LATAM, 2023
- Automotive: LV Sales by Chinese OEMs, LATAM, 2022 and 2023
- Automotive: xEV Sales, LATAM, 2021–2023
- Automotive: Sales of CCs, LATAM, 2022 and 2023
- Automotive: LVs in Subscription, 2022–2024
- Automotive: Sales, LATAM, 2023, 2024, and 2030
- Automotive: Vehicle Sales Share by Type and Country, LATAM, 2023
- Automotive: Vehicle Sales Share Forecast by Type and Country, LATAM, 2024
- Automotive: Country Analysis, Argentina, 2023
- Automotive: Country Analysis, Brazil, 2023
- Automotive: Country Analysis, Chile, 2023
- Automotive: Country Analysis, Colombia, 2023
- Automotive: Country Analysis, Ecuador, 2023
- Automotive: Country Analysis, Mexico, 2023
- Automotive: Country Analysis, Peru, 2023
- Automotive: Country Analysis, Uruguay, 2023
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Deliverable Type | Market Outlook |
---|---|
Author | Victoria Rinaldi |
Industries | Automotive |
No Index | No |
Is Prebook | No |
Keyword 1 | Automotive Industry Trends |
Keyword 2 | Automotive Forecast Latin America |
Keyword 3 | Automotive Industry Insights Latin America |
List of Charts and Figures | GDP Growth Rate, Select Markets, 2023–2024~ Automotive: Share of Hybrid and EV Sales in LV Sales by Country, LATAM, 2023~ Automotive: LV Sales by Chinese OEMs, LATAM, 2022 and 2023~ Automotive: xEV Sales, LATAM, 2021–2023~ Automotive: Sales of CCs, LATAM, 2022 and 2023~ Automotive: LVs in Subscription, 2022–2024~ Automotive: Sales, LATAM, 2023, 2024, and 2030~ Automotive: Vehicle Sales Share by Type and Country, LATAM, 2023~ Automotive: Vehicle Sales Share Forecast by Type and Country, LATAM, 2024~ Automotive: Country Analysis, Argentina, 2023~ Automotive: Country Analysis, Brazil, 2023~ Automotive: Country Analysis, Chile, 2023~ Automotive: Country Analysis, Colombia, 2023~ Automotive: Country Analysis, Ecuador, 2023~ Automotive: Country Analysis, Mexico, 2023~ Automotive: Country Analysis, Peru, 2023~ Automotive: Country Analysis, Uruguay, 2023~ |
Podcast | No |
WIP Number | KA2B-01-00-00-00 |