São Paulo – Brazil’s president, Luiz Inácio Lula da Silva, said on Tuesday night (5) that the country’s automotive industry faces the challenge of competing for markets in Latin America and Africa.
“We should not leave [the market] to parent companies. We need to go after it and compete because we are closer,” Lula said at an event in Brasília marking the 70th anniversary of automakers’ association Anfavea.
Anfavea represents 26 companies responsible for producing motor vehicles and self-propelled machinery in Brazil. According to the president, the government’s role in relation to the sector is to help “create consumers” for vehicles. Lula also said that Brazil’s workforce is “highly qualified and specialized.”
He also recalled that at Germany’s Hannover fair in April, Brazilians were able to show that the country’s biofuel is more efficient and less polluting, with 67% lower greenhouse gas emissions.
“We do not need to import the European technological mix of engines to clean up the planet. They are the ones who should buy our biodiesel to help clean up the planet from their side.”
Industry on the rise
Last month, the association said the sector’s performance exceeded expectations. According to its report, March was the best month for vehicle production since October 2019 and also the strongest period since 2018, with 264,100 units produced across passenger cars, light commercial vehicles, buses, and trucks. This represented a 35.6% increase compared to March 2025 and a 27.6% rise over February.
It was reported that, year to date, production totaled 634,700 units, an increase of 6% compared to the same period last year. Now, the sector operates 53 plants across nine states and 38 municipalities in Brazil. The industry accounts for around 1.3 million direct and indirect jobs and represents approximately 20% of Brazil’s industrial output.
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Translated by Guilherme Miranda
