Market Size of South America Automotive Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 24.88 Billion |
| Market Size (2029) | USD 36.90 Billion |
| CAGR (2024 - 2029) | 8.20 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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South America Automotive Market Analysis
The South America Automotive Market size is estimated at USD 24.88 billion in 2024, and is expected to reach USD 36.90 billion by 2029, growing at a CAGR of 8.20% during the forecast period (2024-2029).
- The COVID-19 pandemic had a significant impact on the South American automotive market. The region experienced a sharp decline in automotive sales and production due to various factors. Government-imposed lockdowns and restrictions on movement led to a decrease in consumer demand and disrupted supply chains, resulting in reduced manufacturing output.
- However, the South American automotive market has shown resilience, with a gradual recovery observed as restrictions were lifted and economic activities resumed. Government stimulus measures, including tax incentives and subsidies, have been implemented to encourage automotive sales and production. The market is expected to continue its recovery, driven by pent-up demand, digital transformation, and the introduction of new electric and hybrid vehicle models.
- The prime factors driving the growth in the sales and demand for passenger cars were lower interest rates and improving consumer confidence. For instance, the export and sales of passenger cars in 2022, compared to 2021, witnessed an increase of about 50% and 6%, respectively.
- However, the automotive market in South America is highly vulnerable to the instability of social and political policies, as countries like Venezuela are experiencing a slowdown in their economic growth, drastically impacting the country's automotive industry growth.
- In Brazil, with the improvement in the economy (directly influencing consumer confidence) and rise in credit availability to support the country's light-vehicle market, growing investment in the country, and strong export demand, the country has been witnessing positive growth in the demand and sales of vehicles.
- Hence, with the situation easing and investments in the industry, the market is expected to grow in the upcoming years.
