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Crisis: car manufacturers that are selling almost nothing in Brazil

Written by Bruno Teles
Published 26/04/2025 às 16:32
Updated 01/05/2025 às 12:01
Full yards, like this one at Volkswagen, reflect market challenges; for automakers in a low-volume crisis, the problem is the lack of sales.
Full yards, like this one at Volkswagen, reflect market challenges; for automakers in a low-volume crisis, the problem is the lack of sales.

Several brands face challenges with low sales in the Brazilian market in 2025 due to high prices, lack of marketing and inadequate strategies affecting automakers.

The automotive market is driven by money. In 2025, some brands will feel the weight of not being able to convert their cars into sales. The reasons vary: prices that are too high, a limited range of models, problems with imports or a lack of marketing. Several automakers face serious challenges in justifying their investments in Brazil.

This includes luxury, Japanese, South Korean and British brands. Even some that bet everything in electric cars are having to backtrack. See the automakers with the lowest sales in 2025, the reasons and the poorly applied investment and where the consumer is not spending.

The 2025 scenario in Brazil: why are some automakers in crisis?

The year 2025 reveals several car manufacturers in crisis in Brazil. Well-known companies struggle to justify their investments in the country. The difficulty in converting cars into sales is clear. Factors such as high prices, market strategies and lack of variety or adequate marketing directly impact results.

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Kia and Suzuki

kia sportage

Kia used to be more prominent in Brazil, with models like the Sportage and Cerato. Today, it is experiencing a presence crisis. Less than 1000 vehicles have been sold so far in 2025. Of this total, 600 units are the small Bongo truck. In other words, Kia sold less than 400 passenger cars in 2025. The brand has lost its renewal rhythm and relies heavily on imports, which makes its products more expensive. The Sportage, for example, starts at R$270.000, competing with better-equipped SUVs. To reverse this, Kia could launch models like the electric EV6 or the K3 (replacing the Cerato), in addition to investing more in marketing.

Suzuki is living an even quieter reality. Only 430 units were registered this year. The Japanese brand operates through HPE Automotores (a Mitsubishi partner), but seems to be operating on autopilot. Today, it only offers the Jimny Sierra, with prices starting at R$170.000, a high price for a simple compact. Without any new features, it is losing ground. The arrival of the new Vitara (already launched in the United Kingdom) and more publicity could change the game.

Lexus and JAC Motors

Lexus, the luxury division of Toyota, follows a discreet philosophy. In Brazil, this discretion has become almost invisible. There were only 258 units in the first quarter of 2025. Its line (UX, NX, RX, ES) has hybrid versions and refined finishes. The problem is the price: the UX starts at R$299.000 and the RX reaches R$670.000. The brand does not communicate its status or innovation well. The network is small and the media presence is non-existent. It would need to invest heavily in marketing and perhaps bring out more affordable models, such as the LBX crossover.

JAC Motors arrived with ambitious promises in 2011. Today, the reality is different. It sold less than 350 vehicles in 2025, 70% of which were electric trucks. The current focus is almost exclusively on electric vehicles (E-JS1, E-IV 330, E-JS4). The cost-benefit is surprising: the E-JS1 costs more than R$120.000. The range still leaves much to be desired and the after-sales network is lean. The investment in electrification is not yielding returns. JAC needs to review its strategy, perhaps with more affordable plug-in hybrids, and reinforce technical support.

Land Rover and Subaru

Land Rover is also on the list. In February 2025, it sold only 267 units, a low number for its history. Models such as the Discovery Sport, Velar, Defender and Evoque are sought after, but expensive (they easily exceed R$500.000, reaching more than R$1 million). The brand faces import bottlenecks, logistical difficulties and a lack of vehicles. There are also concerns about after-sales (expensive parts and maintenance). A more affordable entry-level line, such as the plug-in hybrid Evoque, and greater media presence could help.

Subaru seems to live in a parallel universe. Its operations in Brazil are almost in a coma, with only 12 units registered in March 2025. This is despite having an excellent product like the Forester (all-wheel drive, good performance). But it lacks marketing, presence and competitive pricing. Imported by Caoa, its niche has become too small. The Forester starts at R$240.000 and suffers in the competition. Subaru needs to rebuild its image, highlight its differentiators and perhaps bring the new Crosstrek and hybrid versions, in addition to being more visible.

The situation of large car manufacturers like Volkswagen

The situation of large car manufacturers like Volkswagen

It is important to note that although this article focuses on brands with critically low sales volumes in 2025, challenges such as high stockyards (as sometimes reported with Volkswagen) can occur even with market leaders. However, the nature of the problem is different.

For a giant like VW, which produces and sells on a large scale, full yards usually indicate a temporary mismatch between high production and current sales velocity, or logistical issues. This may require production adjustments or promotional campaigns to manage inventory, but it does not reflect the struggle for survival or near-absence of sales that characterize the low-volume “automakers in crisis” detailed here (such as Suzuki, Subaru, JAC, etc.). Volkswagen’s scale and market position place it in a category distinct from these more critical cases discussed.

The Brazilian automotive market is demanding and unforgiving

Car manufacturers that do not update themselves or do not understand the local consumer are left behind. Money moves the market, but the perception of value is fundamental. Brazilians think long and hard before investing in a car and want returns in technology, comfort, design, after-sales service and status. Some brands have understood and adjusted their course. Others are still trying or just surviving. The message is clear: either adapt or leave the scene.

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Sun
Sun
27/04/2025 10:14

Lexus only offers hybrids. Hybrids are not an option for those who live in the countryside or who are not concerned about fuel prices. Land Rover has also started offering the Vogue exclusively in the hybrid version here. Abroad, the car is available in diesel and gasoline versions and in the respective hybrids.

Georges
Georges
In reply to  Sun
28/04/2025 10:58

A non-plug-in hybrid is an option. Toyota has the Prius flex but does not sell it.

Full Year
Full Year
27/04/2025 10:54

Car manufacturers selling cars at prices that aren’t worth it….

I Comment
I Comment
In reply to  Full Year
27/04/2025 12:07

Ask the government to deduct 50% tax and the price will be worth it

Domenico
Domenico
In reply to  I Comment
27/04/2025 16:10

**** didn't do anything in that sense either.

welington
welington
In reply to  Domenico
28/04/2025 12:41

The biggest tax burden on vehicles is the ICMS, which has nothing to do with the federal government!

itamar
itamar
In reply to  I Comment
28/04/2025 15:30

If the problem were the tax, all car manufacturers would be in trouble, which is not what the article points out.

Fabricio B Aguirre
Fabricio B Aguirre
In reply to  Full Year
27/04/2025 22:57

Even with taxes, they are breaking export records. If this whining were true, other countries would not buy from Brazil but from other producers, such as South Africa and Mexico.

Roberto Strazzabosco
Roberto Strazzabosco
In reply to  Fabricio B Aguirre
28/04/2025 08:25

The exported vehicle is not subject to tax, which reinforces the guilt of the wasteful and exploitative government in the imbroglio.

Edmar
Edmar
In reply to  Fabricio B Aguirre
28/04/2025 10:38

When the country exports, it takes away the high taxes we pay. The Lula government takes away the workers' chorus and hands it over to rich countries!

Eliane Simiao
Eliane Simiao
In reply to  Edmar
03/05/2025 16:12

This discrepancy was not created by the Lula government.

Leonardo Zaniboni
Leonardo Zaniboni
In reply to  Fabricio B Aguirre
28/04/2025 12:34

Is there a tax to export the same as what you pay to buy here???
Try to find out more or you are a PTista (in this case you are really ****)

welington
welington
In reply to  Leonardo Zaniboni
28/04/2025 12:43

I don't know where you got that from, there is no tax!

Marcio Ramos
Marcio Ramos
In reply to  Fabricio B Aguirre
28/04/2025 23:48

I think you are out of touch with foreign trade. With imports!! The same car that costs 90 thousand reais here in Brazil costs 18 thousand reais in Bolivia. An Onix there costs 18 to 20 thousand Bolivian dollars. The dollar today costs 0,82 cents of a real.

Paul Brified
Paul Brified
In reply to  Fabricio B Aguirre
29/04/2025 17:23

Exported cars do not pay the taxes that we pay in the national market.

Allan A
Allan A
In reply to  Full Year
28/04/2025 09:17

Really. A car costs the price of a low-income house. Absurd.

ednilson
ednilson
27/04/2025 11:41

Car manufacturers did not understand that Brazilians demanded technology and innovation, while maintaining the prices of the time. This is almost impossible to achieve. The vast majority of Brazilians do not have the purchasing power to pay for a car worth over 100 thousand reais.

Fabio
Fabio
In reply to  ednilson
27/04/2025 22:16

50 thousand you mean, 100 thousand is a lot

DeLima
DeLima
In reply to  ednilson
01/05/2025 07:36

Worse than that is a great truth my dear, unfortunately.

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Bruno Teles

I talk about technology, innovation, oil and gas. I provide daily updates on opportunities in the Brazilian market. I have published over 5.000 articles on the websites CPG, Naval Porto Estaleiro, Mineração Brasil and Obras Construção Civil. Any suggestions for topics? Send them to brunotelesredator@gmail.com

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