Movement in the Brazilian automotive market in July 2026 saw record growth in sales, driven significantly by electrified cars and imported vehicles. Anfavea, the National Association of Motor Vehicle Manufacturers, announced on August 7, 2026 that almost 280 thousand cars were registered in the month, the highest volume reached in the year. This amount represents an increase of 2.6% compared to June and almost 15% compared to July 2025.
Around 20% of vehicles sold during this period are electrified, covering hybrid, mild hybrid and fully electric models. This proportion is a notable jump, given that a year ago, participation was 11%, and currently it has reached 23.5%. In the overall balance of the year, the increase already exceeds 120%. In July alone, Brazil sold approximately 26 thousand completely electric cars, an unprecedented feat in the data series.
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Most electrified cars come from imports. In the first seven months of 2026, car imports by Brazil grew by almost 26%, with an increase of more than 105% in purchases from China. Mexico also demonstrated significant growth in exports to Brazil, registering 23.8% in the same period.
Meanwhile, exports indicate a recovery, although they remain below the ideal level to offset the accumulated deficit of approximately 21% for the year. In July, Brazil exported more than 39 thousand units, representing an increase of 6.8% compared to June.
Considering the total for the year, the automobile industry accounts for more than 1.7 million vehicles sold, which translates into growth of almost 18% compared to the previous year.
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The manufacturing of new cars in 2026 reached around 254 thousand units, with an expansion of 3.1% compared to June and 5.9% compared to July of the previous year.
“This is a significant result for our industry, even with the challenges in exports and the volume of imports that considerably exceeded the average of previous years,” said Igor Calvet, president of Anfavea.
New tax exemption rules impact the electrified vehicle market
The increase in sales coincides with the reinstatement of Import Tax exemption quotas for electrified vehicles. At the end of June 2026, the Lula government chose to restore this benefit until the end of the year, following a request from the Chinese automaker BYD. The decision was formalized by the Executive Management Committee, linked to the Ministry of Development.
This measure, however, went against the position of other manufacturers already established in Brazil, who argue in favor of a progressive reintroduction of the import tax. According to the original plan, some electrified vehicles should be taxed at 35% again from July 2026, but the federal administration changed course.