FX.co ★ Brazil’s Auto Output Slump Eases in January, Signaling Tentative Stabilization

Brazil’s auto production remained in decline at the start of 2026, but the pace of contraction slowed compared with the end of last year, according to the latest month-over-month data updated on 6 February 2026.

In January 2026, auto output fell by 13.5% compared with the previous month. While still a sharp drop, it marks an improvement from December 2025, when production plunged by 15.8% versus November. The figures suggest that, although the sector continues to face significant headwinds, the worst of the month-to-month contraction may be moderating.

The data, measured on a month-over-month basis, compare the change in production each month to the immediately preceding one. December’s -15.8% reading reflected a deeper contraction relative to November, while January’s -13.5% result points to a slightly less severe pullback as the industry moves into 2026.