Market Size of Latin America Passenger Car Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 4.00 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Latin America Passenger Car Market Analysis
Currently, the Latin America Passenger Car Market is valued at USD 129.14 billion, and it is expected to reach USD 161.74 billion in the next five years at a CAGR of 4.61% during the forecast period.
The Latin American passenger car market is recovering at a steady pace after most of the countries were strongly affected by currency deviation, economic crisis, and COVID-19. The overall passenger car market was boosted by the Mexican market, which accounts for the major market share in terms of exports, production, and sales.
The Latin American market slowly recovered from the pandemic, with an overall market of 2.21 million vehicles in H1 2021. Although it continues to have an impact on the region's economies, the vehicle market saw a 35% increase in sales compared to the first half of last year. Stellaris was able to lead and capture a 20% market share in this environment.
In terms of unit sales, Brazil is by far the largest market for passenger cars in Latin America. More than 1.5 million cars were expected to be sold in Brazil last year. Mexico came in second, with approximately 520,110 thousand cars sold last year.
- With the increasing penetration of the internet and smartphones in the Latin American (LATAM) region, OEMs are finding innovative ways to connect with consumers and are focusing on offering e-commerce platforms and new service models. E-commerce is expected to have a significant positive impact on the automotive aftermarket. This leads to the optimization of services and growth in the sales of automotive parts. For instance, in October 2022, BYD, the leading Chinese new energy vehicle (NEV) manufacturer, formed a partnership with Saga Group, Brazil's largest dealer group, and their first cooperative store opened in Brasilia, Brazil's capital.
Latin America Passenger Car Industry Segmentation
A passenger car is a road motor vehicle, other than a moped or a motorcycle, designed to transport passengers and seat no more than nine people.
The Latin American Passenger Car Market is segmented by Vehicle Type (Hatchback, Sedan, and Sports Utility Vehicle), Fuel Type (Gasoline, Diesel, and Electric), and Country (Brazil, Argentina, Mexico, and the Rest of Latin America). The report provides market size in value (USD) for all mentioned segments.
| By Vehicle Type | |
| Hatchback | |
| Sedan | |
| Sports Utility Vehicle |
| By Fuel Type | |
| Gasoline | |
| Diesel | |
| Electric |
| By Geography | ||||||
|
Latin America Passenger Car Market Size Summary
The Latin American passenger car market is experiencing a gradual recovery, driven primarily by the Mexican market, which holds a significant share in exports, production, and sales. The region's automotive industry is benefiting from increasing internet and smartphone penetration, prompting original equipment manufacturers (OEMs) to innovate with e-commerce platforms and new service models. This shift is expected to enhance the automotive aftermarket, optimizing services and boosting sales of automotive parts. While the market is predominantly dominated by gasoline vehicles, there is a growing interest in ethanol-driven cars and electric vehicles (EVs), particularly in Brazil and Mexico. Despite the early stages of EV adoption, international financial and development organizations are providing support to facilitate the transition to zero-emission vehicles (ZEVs), although the current assistance is insufficient to meet the region's ambitious goals.
The Latin American automotive market holds substantial potential due to low car ownership and rapidly increasing disposable incomes. Brazil and Mexico are the largest markets in terms of unit sales, with Brazil traditionally using protectionist policies to support domestic automakers. However, these policies have had mixed results, impacting export promotion. Major automakers are investing in the region, with collaborations and strategic agreements aimed at enhancing market growth. Countries like Peru are emerging as key players due to open market strategies and new trade agreements. The market is witnessing significant investments and expansions, with manufacturers like BYD and Hyundai making substantial commitments to local production. These developments, alongside new vehicle tax breaks, are expected to drive substantial growth in automobile sales across the region.
Latin America Passenger Car Market Size - Table of Contents
-
1. MARKET DYNAMICS
-
1.1 Market Drivers
-
1.2 Market Restraints
-
1.3 Industry Attractiveness - Porter's Five Forces Analysis
-
1.3.1 Threat of New Entrants
-
1.3.2 Bargaining Power of Buyers/Consumers
-
1.3.3 Bargaining Power of Suppliers
-
1.3.4 Threat of Substitute Products
-
1.3.5 Intensity of Competitive Rivalry
-
-
-
2. MARKET SEGMENTATION (Market Size in USD Billion)
-
2.1 By Vehicle Type
-
2.1.1 Hatchback
-
2.1.2 Sedan
-
2.1.3 Sports Utility Vehicle
-
-
2.2 By Fuel Type
-
2.2.1 Gasoline
-
2.2.2 Diesel
-
2.2.3 Electric
-
-
2.3 By Geography
-
2.3.1 Latin America
-
2.3.1.1 Brazil
-
2.3.1.2 Argentina
-
2.3.1.3 Mexico
-
2.3.1.4 Rest of Latin America
-
-
-
Latin America Passenger Car Market Size FAQs
What is the current Latin America Passenger Car Market size?
The Latin America Passenger Car Market is projected to register a CAGR of greater than 4% during the forecast period (2024-2029)
Who are the key players in Latin America Passenger Car Market?
Renault-Nissan, General Motors Company, Volkswagen AG, FCA Group and Hyundai Motor Company are the major companies operating in the Latin America Passenger Car Market.
