President Luiz Inácio Lula da Silva said Tuesday (May 5) that Brazil’s automotive industry faces the challenge of competing for market share in Latin America and Africa.

“We must not leave [the market] to parent companies. We have to go after it and compete because we are closer,” said Lula.

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He attended an event in Brasília marking the 70th anniversary of the National Association of Motor Vehicle Manufacturers (Anfavea), which represents 26 companies responsible for producing motor vehicles and self-propelled machinery in Brazil.

According to the president, the government’s role in the sector is to help “create consumers” for vehicles. He also noted that the Brazilian workforce is “highly qualified and specialized.”

Less polluting biofuel

He also recalled that, at the Hannover Industrial Fair in Germany in April, Brazilians demonstrated that domestic biofuels are more efficient and less polluting, with 67 percent fewer greenhouse gas emissions.

“We don’t need to import the technological mix of European engines to clean up the planet. They’re the ones who need to buy our biodiesel to help clean up the planet from their side,” said Lula.

Booming sector

The association reported that the automotive sector’s performance exceeded its own expectations. According to the report, March was the best month for vehicle production since October 2019 and the strongest result since 2018, with 264,100 units produced, including passenger cars, light commercial vehicles, buses, and trucks.

This represented a 35.6 percent increase from March 2025 and 27.6 percent from February.

Year-to-date production totaled 634,700 units, up 6 percent from the same period last year.

Today, the sector operates 53 factories across nine states and 38 municipalities. The industry accounts for approximately 1.3 million direct and indirect jobs and represents roughly 20 percent of Brazil’s industrial production.