FX.co ★ Brazil's Auto Production Decline Deepens in December, Reaching -15.8%

In December 2025, Brazil's auto production industry experienced a further decline, intensifying its struggle in the final month of the year. The sector, already grappling with a -11.6% drop in November, witnessed a steepened downturn, with the production indicator plunging to -15.8%. This latest data, updated on January 15, 2026, highlights a significant month-over-month contraction as the industry continues to face persistent challenges.

The decrease from November to December signifies a 4.2% additional downturn, casting concerns over the factors contributing to the continued dip. The auto production sector, regarded as one of the critical components of Brazil's industrial output, is faced with mounting pressure as it seeks ways to rebound and stabilize its operations amidst possibly complex market dynamics.

As the decline in production persists, stakeholders within the industry will likely turn their focus towards exploring effective strategies to curb this negative trajectory and foster recovery. The coming months will be crucial in determining whether policy adjustments or economic stimuli can aid in revitalizing this essential sector of the Brazilian economy.