Brazil autos: LV momentum remains strong; trucks recover on Move Brasil

Research evidence excerpt

Brazil autos: LV momentum remains strong; trucks recover on Move Brasil

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Brazil Auto Parts

Brazil autos: LV momentum remains

strong; trucks recover on Move Brasil

Industry Overview

LVs: strong momentum continues 09 July 2026

Brazilian LV production maintained its strong momentum in June, rising 19% YoY, Equity

supported by passenger cars (+23% YoY). LV sales also remained robust, increasing 29% Brazil

YoY, with volumes reaching the highest June level since 2013. Fenabrave noted that the Brazil Auto Parts

segment continued to benefit from discounts offered by automakers, while we note that Gabriel Frazao >>

the recent expansion in vehicle credit origination likely supported demand. Looking Research Analyst

ahead, we note that rising auto loan delinquency rates could weigh on credit availability Merrill+55 11Lynch2188 (Brazil)4252

and potentially moderate the current momentum in the LV market - See Exhibits 9 - 10. gabriel.frazao@bofa.com

Rogerio Araujo >>

Trucks: uptick in June, likely supported by Move Brasil ResearchMerrill LynchAnalyst(Brazil)

The truck and trailers markets improved in June, particularly in segments linked to +55 11 2188 4255

rogerio.araujo@bofa.com

agribusiness. Truck production declined -4% YoY, a significant improvement vs previous

months (YTD at -14%). The rebound was evident in medium-duty trucks (+31% YoY) and

heavy-duty trucks (+2%). Trailer sales rose +9% YoY, with agribusiness-related FABUS: Brazil Bus Body

outperforming the market, +36% YoY. We think this pickup was partially driven by Manufacturers Association

financing from Move Brasil, which should support the segment through at least 3Q26.

Fenabrave: Brazil's Vehicles

Buses: microbuses remain the highlight Distribution Federation