South America Electric Power Steering Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

South America Electric Power Steering Market Trends and Insights

Platform Electrification and Hybrid EV Proliferation

Electric-car sales in South America exceeded 350,000 units in 2025, up 75% from 2024. Brazil accounted for the majority of that increase, with plug-in hybrids making up a large share of regional registrations. Plug-in hybrid platforms require full electric power steering systems while keeping familiar vehicle architectures and conventional body layouts. This makes their adoption less dependent on entirely new battery-electric platform cycles, which can take longer to design and industrialize. The electrified light-duty fleet in South America and the Caribbean reached 837,014 vehicles in the first quarter of 2026 and is expected to exceed 1 million by the end of 2026 ^{[2]“June 2026 Electric Mobility Monitor in South America and the Caribbean,” South American Energy Organization, OLADE, olade.org} . The larger installed fleet supports replacement demand and provides the South American electric power steering market with original-equipment demand, aftermarket demand, and a broader set of vehicle owners familiar with electronically assisted steering.

Mandatory ADAS Integration

Brazil requires new vehicle model codes registered from January 2026 to meet driver-assistance performance requirements, including automatic emergency braking, and mandates full fleet coverage from January 2029 ^{[3]“PL 1107/2025, Projeto de Lei sobre AEBS no Código de Trânsito Brasileiro,” Câmara dos Deputados, camara.leg.br} . Automatic emergency braking and lane-support functions depend on reliable steering torque and position information, particularly when corrective steering inputs are needed. A sensor-capable electric power steering assembly, therefore, becomes a required component for vehicles designed to meet these functions. A proposal in Brazil's Chamber of Deputies would include automatic emergency braking in the national traffic code, strengthening the policy basis for automakers' planning. Brazilian universities and research institutes are developing radar sensors for automatic braking, which may strengthen domestic capability before the 2029 deadline. South NCAP's 2025 protocol evaluates active-safety performance, supports voluntary adoption in countries without comparable mandates, and broadens the technical requirements that suppliers in the South American electric power steering market must meet.

Carbon Emission and Fuel-Efficiency Mandates

Brazil's PROCONVE L8 standards took effect in January 2025, tightening passenger-car emissions limits. The rules encourage powertrain and vehicle-efficiency measures that support the use of electric rather than hydraulic steering in new models. Chile has binding light-duty fuel-economy requirements intended to improve importer compliance and accelerate the adoption of zero-emission vehicles. Together, these requirements make hydraulic steering less attractive for high-volume new-model certification and fleet-efficiency planning. The South American electric power steering market benefits from EPS, which reduces the continuous engine load associated with hydraulic pumps and aligns with the electronic architecture used in hybrid and driver-assistance vehicles.

OEM Supply-Chain Localization and Plant Investment

Automaker investments in Brazil are increasing the addressable volume for local steering suppliers and component manufacturers. Stellantis has committed substantial investment to South America over the medium term and plans to launch a broad range of products featuring bio-hybrid and electrification technologies. Under this program, its Goiana facility in Pernambuco received significant investment. Kia is also investing substantially in its Pesquería plant to produce the EV3 over the coming years, starting with a meaningful share of local content and planning to increase this share. These programs incorporate steering specifications into vehicle platforms for multi-year production cycles, linking suppliers to a predictable sequence of product launch decisions. Production decisions support the South American electric power steering market, as manufacturers find it difficult to reverse once they establish a vehicle’s chassis, steering architecture, and approved component set.

Higher Unit Costs Than Conventional Hydraulics

The price difference between electric and hydraulic steering remains important in price-sensitive vehicle categories across the region. The constraint is strongest in commercial vehicles, where high steering loads can preserve the upfront cost advantage of hydraulic systems. Die-casting improvements, automated assembly, and integrated electronic control units are reducing EPS production costs, but savings are not evenly distributed among suppliers. Companies with in-house motor and control-unit development can absorb cost pressure more easily than smaller manufacturers without comparable vertical integration. Brazil's large passenger-vehicle base shows how higher volumes can support wider adoption, but Colombia, Argentina, and smaller markets have not reached a similar scale. In those markets and heavier vehicle applications, the South American electric power steering market faces fleet buyers who may prioritize purchase cost over the efficiency, packaging, and driving benefits of EPS.

Semiconductor and Raw-Material Supply-Chain Volatility

Electric power steering relies on qualified power-management integrated circuits and motor-control microprocessors that are not easily substituted during vehicle production. Supply disruption can limit vehicle output because automotive components require lengthy validation before a replacement is approved. The shift toward 800-volt electrical architecture adds specialized silicon-carbide components to the sourcing challenge and increases the importance of qualified capacity. South American production remains exposed because core semiconductor content is imported, and regional vehicle plants must manage extended qualification lead times. This exposure is most pronounced in Brazil, where plants depend on predictable deliveries for domestic programs and export programs. Multi-source component strategies and proximity to local production can reduce delivery risk in the South American electric power steering market. However, they do not eliminate dependence on the global electronics supply.

*Our forecasts treat driver/restraint impacts as directional, not additive. The impact forecasts reflect baseline growth, mix effects, and variable interactions.

Segment Analysis

By Type: Column EPS Leads Regional Volume and Growth

Column EPS represented 63.37% of the South America electric power steering market in 2025 and is projected to expand at a 7.11% CAGR through 2031. It is the preferred format in the region's compact and subcompact passenger-car fleet, which defines much of the region's automotive volume. The system places the motor and assist mechanism directly on the steering column. This arrangement uses less space in smaller engine bays, reduces installation complexity, and suits vehicle programs with tight cost targets. It also provides a cost-performance balance that supports high-volume passenger-vehicle programs without requiring extensive chassis changes. The South American electric power steering industry continues to rely on this configuration as electrification reaches mass-market models and suppliers seek scalable local production.

Pinion and dual-pinion systems are gaining use in SUVs and newer electric-vehicle platforms that need higher assist torque, more direct steering response, and more precise handling. Their layout can also support later progress toward steer-by-wire systems by aligning with the functional redundancy used in advanced steering designs. 

By Component Type: Rack and Column Assemblies Anchor Revenue as Sensors Grow Fastest

Steering rack and column assemblies accounted for 58.71% of the South American electric power steering market in 2025. They are the highest-value physical elements in an EPS system because they combine the mechanical steering path with integrated electric assistance. Their production combines precision-machined mechanical parts, high-strength bearings, and coupling mechanisms that must work reliably over the vehicle lifecycle. Automakers require extensive qualification before approving these assemblies for volume production, particularly when the design is tied to a specific chassis layout. Once chassis geometry is fixed, existing suppliers are difficult to replace during a vehicle program. This gives the South American electric power steering industry a durable revenue base in rack-and-column assemblies through established relationships with automakers.

Sensors are forecast to grow at a 7.16% CAGR through 2031, the highest rate among component groups. Torque and position sensors connect driver input with steering assistance and driver-assistance control functions. Their required accuracy rises as Level 2+ systems become more common and vehicle makers need more dependable feedback from the steering system. Each compliant vehicle needs torque and position sensing within the steering assembly, raising sensor content as safety functions become standard. JTEKT's investment in EPS control software for over-the-air steering-parameter updates adds a software layer to the use of sensor data. ISO 26262 functional-safety requirements can limit the qualified supplier pool, reducing price-only competition and strengthening the role of certified capability in the South American electric power steering market.

By Vehicle Type: Passenger Cars Set Demand While Commercial Vehicles Depend on Policy

Passenger cars accounted for 78.83% of the South American electric power steering market in 2025 and are projected to register a CAGR of 7.24% through 2031. Concurrent vehicle launches in Brazil support this segment, particularly among mass-market models and emerging hybrid nameplates. These vehicles commonly use column-type EPS, as it suits compact vehicle architectures and balances system cost with steering assistance. Argentina’s vehicle market recovery in 2025 also increased passenger car volumes across the regional vehicle base. Consequently, passenger cars remain central to unit demand across supplier programs and the replacement market. This broad passenger car base provides the South American electric power steering market with a growth avenue beyond premium models, where electric steering systems gained earlier acceptance.

Commercial vehicles account for the remaining demand but follow a different adoption path than passenger vehicles. Hydraulic systems remain viable in trucks and heavy utility vehicles that require high assist torque, particularly when buyers prioritize upfront costs. For fleet operators, the lower acquisition cost of hydraulic systems can outweigh the energy-efficiency and control benefits of EPS. However, Chile's electric bus deployment presents a clear opportunity, as electrified bus platforms typically integrate EPS into their chassis packages. Municipal fleet electrification mandates and green procurement policies are more likely to drive commercial EPS demand than conventional fleet replacement cycles. Consequently, commercial vehicle growth depends more heavily on public policy, vehicle electrification programs, and municipal purchasing decisions than passenger vehicle growth.

Geography Analysis

Brazil held 47.61% of the South American electric power steering market in 2025 and is projected to grow at a 7.28% CAGR through 2031. The country combines regulation, automaker investment, and established local steering production within the region's largest vehicle manufacturing base. The MOVER program links fiscal incentives to performance and driver-assistance requirements, encouraging the local assembly of vehicles with EPS.

Stellantis is implementing its EUR 5.6 billion (USD 6 billion) South American investment program through 2030, which supports the launch of electrified platforms in Brazil. Local manufacturing proximity is becoming more important in new contract bids because production support, logistics, and component availability affect supplier decisions.

Argentina, Colombia, and Chile broaden the South American electric power steering market and reduce reliance on a single national vehicle cycle. Argentina's Decree 196/2025 incorporated autonomous vehicles into national traffic law, pointing toward greater relevance for driver-assistance-ready steering systems. Colombia's expanding hybrid and electric vehicle mix supports higher EPS fitment across new passenger-car sales and widens the customer base for regional suppliers. Chile's binding fuel-economy standards support vehicle efficiency, while its electric bus fleet strengthens the case for EPS in commercial applications. These countries do not yet match Brazil's manufacturing scale, local supplier base, or volume of announced vehicle programs. However, their regulatory and fleet developments offer several avenues for demand growth in the South American electric power steering market.