Brazil’s car production dropped by 15.8% from the previous month to 184.5 thousand units in December 2025, partly due to the fewer number of working days. Year-on-year, auto production declined 3.9% compared to December 2024. For the year, Brazilian automakers produced 2.65 million vehicles, up 3.5% from 2024 and marking the industry’s strongest performance since 2019, mainly underpinned by light vehicles. Still, output fell short of manufacturers’ expectations for 7.8% growth, mainly impacted by high interest rates and increased competition from imported vehicles. For 2026, industry group Anfavea forecasts production to rise by 3.7% to about 2.7 million units.