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.
Research Assistance
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook