Emerging Growth Opportunities Transform the Latin American CV Landscape
Propulsion alternatives to diesel will gain momentum during the medium term of the forecast period (2025-2026); the outlook for the medium-duty (MD) segment and natural gas (NG) in the heavy-duty (HD) segment is strong
Overall commercial vehicle (CV) units in Latin America (LATAM) are expected to reach 1.5 million units by 2030, growing at a compound annual growth rate (CAGR) of 3.4% between 2021 and 2030. Infrastructure investment, mining development and exports, multimodal transportation projects, and agro-based farm equipment manufacturing will drive industry growth in the coming decade. eCommerce growth will drive demand for the intercity transportation of various goods and urban distribution trucks. As the COVID-19 pandemic declined, global commodities markets recovered; demand outpaced supply and resulted in higher prices and exports in the region. These factors are expected to be the major drivers for commercial truck demand in the short and long terms.
Brazil and Mexico contribute 68% of LATAM's CV units; pickups dominate both countries and account for 69% of the region's LCV sales. Most countries in LATAM focus on renewable energy sources for the energy transition from fossil fuels; the electromobility strategy will also drive the growth of alternate powertrain vehicles. Companies are likely to leverage government support for electromobility to create common platforms for vehicles across different regions and quickly scale up operations to achieve maximum profitability.
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