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Latin America Automotive Industry Outlook, 2025
Increasing Competition, Powertrain Diversification, and Local Production of Electrified Vehicles Enable Growth Opportunities
23-Jun-2025
Global
Market Research
KB9A-01-00-00-00
AU_2025_33582
$4,950.00
Special Price $4,455.00 save 10 %
The Latin American light vehicle industry has been recovering from the COVID-19 pandemic. In 2024, the industry sold 5.2 million vehicles, representing a 7.9% year-over-year (YoY) growth. Although it has yet to reach the 2019 sales figure, it is expected to do so in 2025. This year, the region is expected to sell approximately 5.4 million units, which is 30.3K more units than in 2019.
Brazil led sales growth in 2024, with nearly 2.5 million units and a 14.1% YoY increase. Colombia came in second position, recording 189.6K units and 9.8% YoY growth. Meanwhile, Argentina, Chile, Ecuador, and Peru registered negative growth. Ecuador was the country with the largest sales decrease, experiencing a 19.5% YoY decline.
Frost & Sullivan estimates that, in 2025, the largest markets in the region will follow different directions. While Brazil is forecast to grow by 6.5%, Mexico will likely decrease by 3.1%. Regarding the electrified vehicle market, hybrids and electric vehicles will continue expanding in the region, reaching about 682K units sold in 2025, a 50% YoY growth.
This analysis covers multiple trends, including the rising penetration of Chinese original equipment manufacturers (OEMs) in the region, local production of hybrid and electric vehicles, powertrain diversification, expansion of connected vehicles and advanced driver assistance systems/autonomous, and rising OEM investments.
Author: Ingrid Schumann
Why Is It Increasingly Difficult to Grow?
The Strategic Imperative
The Impact of the Top 3 Strategic Imperatives on the LATAM Automotive Industry
Growth Opportunities Fuel the Growth Pipeline Engine
Top 10 Growth Opportunities
Top 10 Trends for 2025
Global GDP Growth Snapshot
Trend 1: Global GDP Growth
Growth Opportunity 1: Global GDP Growth
Trend 2: Inflation and Interest Rates
Growth Opportunity 2: Inflation and Interest Rates
Trend 3: Oil Markets
Growth Opportunity 3: Oil Markets
Trend 4: Labor Market
Growth Opportunity 4: Labor Market
Trend 5: US Dollar and Gold
Growth Opportunity 5: US Dollar and Gold
Trend 6: North America
Growth Opportunity 6: North America
Trend 7: Latin America
Growth Opportunity 7: Latin America
Trend 8: Western Europe
Growth Opportunity 8: Western Europe
Trend 9: Middle East
Growth Opportunity 9: Middle East
Trend 10: Asia
Growth Opportunity 10: Asia
Segmentation
Growth Environment
Top Trends Driving the LATAM Automotive Industry
Trend 1: Powertrain Diversification
Trend 2: Expansion of Chinese OEMs
Trend 3: Local Production of Hybrids and EVs
Trend 4: Rising OEM Investments
Trend 5: Expansion of Connected Cars and ADAS Features/Autonomous Vehicles
CASE Demand Matrix by Country
Market Snapshot, 2024
Sales by Country
Segment Forecast
Argentina
Brazil
Chile
Colombia
Ecuador
Mexico
Peru
Uruguay
2025 Predictions: Regional/Product/Vertical/Technology
Conclusions and Future Outlook
Growth Opportunity 1: Electrified Vehicle Sales
Growth Opportunity 2: Connected Car Services
Growth Opportunity 3: ADAS Features/Autonomous Vehicles
Benefits and Impacts of Growth Opportunities
Next Steps
List of Exhibits
Legal Disclaimer
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Brazil led sales growth in 2024, with nearly 2.5 million units and a 14.1% YoY increase. Colombia came in second position, recording 189.6K units and 9.8% YoY growth. Meanwhile, Argentina, Chile, Ecuador, and Peru registered negative growth. Ecuador was the country with the largest sales decrease, experiencing a 19.5% YoY decline.
Frost & Sullivan estimates that, in 2025, the largest markets in the region will follow different directions. While Brazil is forecast to grow by 6.5%, Mexico will likely decrease by 3.1%. Regarding the electrified vehicle market, hybrids and electric vehicles will continue expanding in the region, reaching about 682K units sold in 2025, a 50% YoY growth.
This analysis covers multiple trends, including the rising penetration of Chinese original equipment manufacturers (OEMs) in the region, local production of hybrid and electric vehicles, powertrain diversification, expansion of connected vehicles and advanced driver assistance systems/autonomous, and rising OEM investments.
Author: Ingrid Schumann
| Deliverable Type | Market Research |
|---|---|
| Industries | Automotive |
| No Index | No |
| Is Prebook | No |
| Keyword 1 | automotive market trends |
| Keyword 2 | EV adoption LATAM |
| Keyword 3 | OEM strategy Latin America |
| Podcast | No |
| Predecessor | KA2B-01-00-00-00 |
| WIP Number | KB9A-01-00-00-00 |