South America Automotive Industry Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The South America Automotive Industry Report is Segmented by Vehicle Type (Passenger Cars, Commercial Vehicles, and Two-Wheelers), Fuel (Diesel, Gasoline, Electric Vehicle, and Other Fuels), and Country (Brazil, Argentina, Chile, Peru, and Rest of South America). The Report Offers Market Sizes and Forecasts for the South America Automotive Market in Terms of Value (USD) for all the Above Segments.

South America Automotive Market Size

South America Automotive Market Summary

South America Automotive Market Analysis

The South America Automotive Market size is estimated at USD 27.28 billion in 2025, and is expected to reach USD 41.21 billion by 2030, at a CAGR of 8.6% during the forecast period (2025-2030).

The automotive industry in South America plays a crucial role in the region's economy, with Brazil and Argentina being the largest automotive markets. Brazil, in particular, is one of the world's top automotive producers and consumers. The country boasts a well-established automotive manufacturing base, with numerous domestic and international automakers operating assembly plants. Similarly, Argentina has a significant automotive manufacturing industry, specializing in the production of passenger cars, trucks, and buses.

Brazil and Argentina have historically been attractive destinations for automotive investments due to their large domestic markets and favorable government policies. However, the industry has faced challenges in recent years, including economic instability, political uncertainty, and fluctuations in demand. Despite these challenges, the automotive industry remains a key driver of economic growth and employment in the region.

There is a significant push for eco-friendly vehicles. Over USD 23 billion (BRL 117 billion) in investments have been announced to produce cars using decarbonization technologies, focusing on hybrids (Anfavea). This highlights a commitment to a greener future.

In addition to Brazil and Argentina, other countries in South America, such as Colombia and Chile, also have burgeoning automotive industries. Colombia, for instance, has seen significant growth in automotive production and exports in recent years, fueled by government incentives and favorable trade agreements. Chile, on the other hand, has a smaller automotive industry but is a key market for imported vehicles, particularly luxury and premium brands.

The future of the automotive industry in South America is closely tied to global trends, including the shift toward electric and autonomous vehicles, as well as efforts to reduce carbon emissions and combat climate change. Governments and industry stakeholders in the region are increasingly focused on promoting sustainable mobility solutions and investing in research and development to stay competitive in the evolving automotive landscape.

South America Automotive Industry Overview

Major manufacturers in the South American automotive market include Stallantis, General Motors, Toyota Motor Corporation, Nissan Group, and Volkswagen AG. Between 2021 and 2022, Toyota led the market with more than 73,000 units of new registrations, followed by Volkswagen with 55,000.

  • In March 2024, Volkswagen Brazil introduced a rugged version of the new-generation Polo hatchback, reminiscent of the Cross Polo crossover previously launched in India. Unlike its predecessor, the new Polo Track for Brazil features subtle enhancements tailored to appeal to farmers, targeting the agricultural sector with capabilities suited for traversing rough terrain in rural areas.
  • In November 2023, Citroen introduced the C3 Aircross, an SUV based on the C3 hatchback, in Brazil. This SUV will retain most of the design elements and features from its Indian-spec counterpart, albeit with a new engine and gearbox option.
  • In July 2023, Volkswagen announced its plans for a major product offensive in South America, with the goal of increasing its market share in Brazil by 40% by 2027. The company will launch 15 new electric and flex-fuel vehicle models by 2025 and follow up with hybrid vehicles in the medium term. The first fully electric models are the Volkswagen ID.4 and ID. Buzz was expected to be available in Brazil before the end of 2023.

South America Automotive Market Leaders

  1. General Motors

  2. Stellantis NV

  3. Renault Group

  4. Volkswagen AG

  5. Toyota Motor Corporation

  6. *Disclaimer: Major Players sorted in no particular order
South America Automotive Market Concentration
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South America Automotive Market News

  • March 2024: Car manufacturers made announcements suggesting investments exceeding BRL 117 billion (USD 23.48 billion) in Brazil, primarily directed toward the production of vehicles equipped with decarbonization technologies, with a particular focus on hybrid models.
  • February 2024: According to representatives from the National Association of Automobile Manufacturers (Anfavea), the Brazilian automotive industry is set to receive a substantial boost, with investments totaling USD 20 billion (BRL 100 billion) anticipated by 2029.
  • July 2023: In Argentina, the government announced that it anticipates the inauguration of its inaugural lithium-ion battery plant by September, utilizing locally extracted and processed lithium carbonate provided by US mining company Livent Corporation.

South America Automotive Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET DYNAMICS

  • 4.1 Market Drivers
    • 4.1.1 Economic Growth and Stability
  • 4.2 Market Restraints
    • 4.2.1 Increasing Cost of Vehicles to End Users
  • 4.3 Industry Attractiveness - Porter's Five Forces Analysis
    • 4.3.1 Threat of New Entrants
    • 4.3.2 Bargaining Power of Buyers/Consumers
    • 4.3.3 Bargaining Power of Suppliers
    • 4.3.4 Threat of Substitute Products
    • 4.3.5 Intensity of Competitive Rivalry

5. MARKET SEGMENTATION

  • 5.1 By Vehicle Type
    • 5.1.1 Passenger Cars
    • 5.1.2 Commercial Vehicles
    • 5.1.3 Two-wheelers
  • 5.2 By Fuel Type
    • 5.2.1 Diesel
    • 5.2.2 Gasoline
    • 5.2.3 Electric Vehicle
    • 5.2.4 Other Fuel Types
  • 5.3 Country
    • 5.3.1 Brazil
    • 5.3.2 Argentina
    • 5.3.3 Chile
    • 5.3.4 Peru
    • 5.3.5 Rest of South America

6. COMPETITIVE LANDSCAPE

  • 6.1 Vendor Market Share**
  • 6.2 Company Profiles*
    • 6.2.1 General Motors
    • 6.2.2 Toyota Motor Corp.
    • 6.2.3 Stallantis NV
    • 6.2.4 Volkswagen AG
    • 6.2.5 Ford Motor Company
    • 6.2.6 Honda Motor Company Ltd
    • 6.2.7 Hyundai Motor Company
    • 6.2.8 Nissan Motor Company Ltd
    • 6.2.9 Daimler AG
    • 6.2.10 Groupe Renault
    • 6.2.11 Kia Motor Corporation

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability
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South America Automotive Industry Segmentation

The South American automotive industry encompasses the production, sale, and usage of vehicles within the countries of the region.

The South American automotive industry is segmented by vehicle type (passenger cars, commercial vehicles, and two-wheelers), fuel (diesel, gasoline, electric vehicle, and others), and country. It includes various types of vehicles, such as passenger cars, commercial vehicles (including light commercial vehicles, heavy commercial vehicles, and buses), and two-wheelers (including motorcycles and scooters).

The report offers market sizes and forecasts for the South American automotive market in terms of value (USD) for all the above segments.

By Vehicle Type Passenger Cars
Commercial Vehicles
Two-wheelers
By Fuel Type Diesel
Gasoline
Electric Vehicle
Other Fuel Types
Country Brazil
Argentina
Chile
Peru
Rest of South America
By Vehicle Type
Passenger Cars
Commercial Vehicles
Two-wheelers
By Fuel Type
Diesel
Gasoline
Electric Vehicle
Other Fuel Types
Country
Brazil
Argentina
Chile
Peru
Rest of South America
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South America Automotive Market Research FAQs

How big is the South America Automotive Market?

The South America Automotive Market size is expected to reach USD 27.28 billion in 2025 and grow at a CAGR of 8.60% to reach USD 41.21 billion by 2030.

What is the current South America Automotive Market size?

In 2025, the South America Automotive Market size is expected to reach USD 27.28 billion.

Who are the key players in South America Automotive Market?

General Motors, Stellantis NV, Renault Group, Volkswagen AG and Toyota Motor Corporation are the major companies operating in the South America Automotive Market.

What years does this South America Automotive Market cover, and what was the market size in 2024?

In 2024, the South America Automotive Market size was estimated at USD 24.93 billion. The report covers the South America Automotive Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the South America Automotive Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Latin America Automotive Industry Report

Statistics for the 2025 South America Automotive market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South America Automotive analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.

South America Automotive Market Report Snapshots

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