New car sales in Brazil slumped 39% month-over-month to 70.5 thousand units in January 2026. Registration of passenger cars declined 40.6% to 125.2 thousand, while those of light commercial vehicles contracted by 33.4% to 37.7 thousand. Sales of trucks (-34.5% to 6.4 thousand) and buses (-43.6% to 1,180) also recorded steep declines. Electrified vehicles accounted for 16.8% of registrations in January, the highest share on record. On a yearly basis, sector started 2026 with stable performance in the domestic market, with sales virtually unchanged (-0.4%) from the same month in 2025, despite having one fewer business day on the calendar. In foreign markets, passenger car exports fell 18.3% compared with January 2025, mainly reflecting a 5% drop in shipments to Argentina.