Latin America Automotive Industry Outlook 2024

Latin America Automotive Industry Outlook 2024

Connected and Electrified Vehicles, New Business Models, and Increasing Competition Enable Growth Opportunities

RELEASE DATE
04-Apr-2024
REGION
North America
Deliverable Type
Market Outlook
Research Code: KA2B-01-00-00-00
SKU: AU_2024_641
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Description

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.

Table of Contents

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

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.
More Information
Deliverable Type Market Outlook
Author Victoria Rinaldi
Industries Automotive
No Index No
Is Prebook No
Podcast No
WIP Number KA2B-01-00-00-00