Brazil autos: LV momentum holds; trucks stabilizing; microbuses support buses

Research evidence excerpt

Brazil autos: LV momentum holds; trucks stabilizing; microbuses support buses

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Brazil Auto Parts

Brazil autos: LV momentum holds; trucks

stabilizing; microbuses support buses

Industry Overview

LVs: strong momentum sustained 15 June 2026

Brazilian LV production maintained the strong momentum that began in March, rising Equity

17% YoY in May, supported by a 26% YoY increase in passenger cars. LV sales also Brazil

remained robust, up 23% YoY, with volumes reaching the highest May level since 2014 Brazil Auto Parts

(Exhibit 6 and 8). Looking at the sales breakdown, “other players” continued to gain Gabriel Frazao >>

relevance, with volumes up 141% YoY. New entrants are also scaling quickly, with Geely Research Analyst

up 29% MoM, Leapmotor up 31% MoM, and Changan increasing more than fourfold Merrill+55 11Lynch2188 (Brazil)4252

MoM. That said, incumbents also delivered solid performances, particularly General gabriel.frazao@bofa.com

Motors (+29% YoY) and Volkswagen (+16% YoY). Rogerio Araujo >>

Research Analyst

Trucks: stabilizing ahead of stimulus Merrill+55 11Lynch2188 (Brazil)4255

The truck segment declined -15% YoY, primarily driven by continued weakness in heavy- rogerio.araujo@bofa.com

duty trucks (-20% YoY). That said, production rates appear to be stabilizing, suggesting

limited downside. Looking ahead, the segment should start to benefit from the second

EPA: Environment Protection Agency

phase of the Move Brasil program starting in 3Q26, considering an estimated ~1-month

lag for credit approval. In truck-trailers, sales were down 13% YoY, with continued FABUS: Brazil Bus Body

pressure on agribusiness-related models: dumpers (-12%) and bulk trailers (-8%). Manufacturers Association