Brazil Autos: Pricing Tracker: Stabilizing in August After July’s Softness; Premium Under Competitive Pressure

Research evidence excerpt

Brazil Autos: Pricing Tracker: Stabilizing in August After July’s Softness; Premium Under Competitive Pressure

Viewpoint |

03 Aug 2026 06:40:01 ET │ 32 pages

Brazil Autos

Pricing Tracker: Stabilizing in August After July’s Softness; Premium

Under Competitive Pressure

Filipe Nielsen AC

CITI'S TAKE +55-11-4009-5213

Data for August shows new car prices flat m-o-m on average, while filipe.nielsen@citi.com

Seminovos prices dropped -0.13% m-o-m. Prices of used cars showed more

stable trends compared to last month’s deterioration, which looks positive

for residual value management of Localiza’s and Movida’s fleets. This month

we incorporated 13 new car models (mainly premium) and redistributed

segments that are now based on price ranges, to better represent the

ongoing competitive dynamics. While entry-level car prices remain resilient,

new premium cars showed deterioration with pricing competition that

appears to be escalating, although used premium segments stood resilient

and didn’t pass through the new car softness entirely. While such signals

justify caution, we still view the market resilient and supporting companies’

depreciation expectations. All key variables are in 34 charts in the report.

New car market — New car prices increased +2.8% y-o-y in August, and stayed

roughly flat m-o-m, on average (details on Figure 8). Prices of ICE cars decelerated

mainly dragged by premium segments, while EV cars showed the second

consecutive price increase. Entry-level models showed positive price reactions,

possibly pushed by improving affordability, but the competitive pressure from

elevated inventory and new launches apparently intensified among premium

segments. While premium ICE cars were the most impacted, prices of premium EVs

stood stable.