Latin America Automotive Industry Outlook 2024

Latin America Automotive Industry Outlook 2024

Connected and Electrified Vehicles, New Business Models, and Increasing Competition Enable Growth Opportunities

The Latin American automotive industry maintains its rising trend despite the severe effects of COVID-19 on local economies, international conflicts, inflation, exchange rates, and difficulties arising from credit accessibility.

With 4.8 million units sold in 2023, the Latin American automotive industry will likely grow 8.2% in 2024. However, the region has not reached pre-pandemic numbers, with 2023 sales numbers 10.7% lower than 2019. Mexico showed the most growth in the region, surpassing 2023 numbers by 24.4% and going from 1.1 million units to 1.4 million. Meanwhile, Colombia and Chile showed negative growth, with 29.9% and 26.5%, respectively.

This analysis covers multiple trends, including the rising penetration of Chinese original equipment manufacturers in the region, local production of hybrid and electric vehicles, powertrain diversification, expansion of connected vehicles, and new mobility models.

Frost & Sullivan expects the industry to grow 4.8% in 2024. Our estimations show that Colombia will likely lead growth in the region at 21.5%, translating into 187,500 units. Brazil, the largest market in Latin America, will likely sell 2.4 million units, recording 8% growth. In contrast, Argentina and Ecuador will experience a decrease in their total amount of light vehicle sales.