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Latin America Automotive Industry Outlook, 2025

Publisher Frost & Sullivan
Published Jun 23, 2025
SKU # MC20127303

Description

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.

Table of Contents

    • The 2024 LATAM Automotive Industry: Forecast vs. Actual
    • Historical Analytics
    • Top Predictions for 2025
    • Why Is It Increasingly Difficult to Grow?
    • The Strategic Imperative 8TM
    • The Impact of the Top 3 Strategic Imperatives on the LATAM Automotive Industry
    • Growth Opportunities Fuel the Growth Pipeline Engine TM
    • Top 10 Growth Opportunities
    • Top 10 Trends for 2025
    • Global GDP Growth Snapshot
    • Trend 1: Global GDP Growth
    • Growth Opportunity 1: Global GDP Growth
    • Trend 2: Inflation and Interest Rates
    • Growth Opportunity 2: Inflation and Interest Rates
    • Trend 3: Oil Markets
    • Growth Opportunity 3: Oil Markets
    • Trend 4: Labor Market
    • Growth Opportunity 4: Labor Market
    • Trend 5: US Dollar and Gold
    • Growth Opportunity 5: US Dollar and Gold
    • Trend 6: North America
    • Growth Opportunity 6: North America
    • Trend 7: Latin America
    • Growth Opportunity 7: Latin America
    • Trend 8: Western Europe
    • Growth Opportunity 8: Western Europe
    • Trend 9: Middle East
    • Growth Opportunity 9: Middle East
    • Trend 10: Asia
    • Growth Opportunity 10: Asia
    • List of Countries by Region, 20251
    • Segmentation
    • Growth Environment
    • Top Trends Driving the LATAM Automotive Industry
    • Trend 1: Powertrain Diversification
    • Trend 2: Expansion of Chinese OEMs
    • Trend 3: Local Production of Hybrids and EVs
    • Trend 4: Rising OEM Investments
    • Trend 5: Expansion of Connected Cars and ADAS Features/Autonomous Vehicles
    • Service and Tech Roadmap
    • CASE Demand Matrix by Country
    • Market Snapshot, 2024
    • Sales by Country
    • Segment Forecast
    • Argentina
    • Brazil
    • Chile
    • Colombia
    • Ecuador
    • Mexico
    • Peru
    • Uruguay
    • 2025 Predictions: Regional/Product/Vertical/Technology
    • Conclusions and Future Outlook
    • Growth Opportunity 1: Electrified Vehicle Sales
    • Growth Opportunity 2: Connected Car Services
    • Growth Opportunity 3: ADAS Features/Autonomous Vehicles
    • Benefits and Impacts of Growth Opportunities
    • Next Steps

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