Sales growth rate slows in October, despite better projections for 2026
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Sales growth rate slows in October, despite better projections for 2026

Analyses conducted by Bright Consulting indicate that although 2026 is projected to be a more positive period compared to 2025, this scenario is slightly below the estimates presented up to September. Despite sales showing signs of stabilization, annual growth, which had reached +22% in August, fell to just +2.4% at the end of last month, signaling that the peak of the high cycle has passed.

The consultancy points to two main factors for this reduction: the decrease in inventories of lower-cost hybrid and electric vehicles, most of which come from China, and the electoral period, which tends to generate greater caution among consumers planning to purchase or replace a new vehicle.

Automobile Sales Analysis

The daily average of sales of cars and light vehicles, which together represent 94% of the total (the remaining 5% are for trucks and 1% for buses), serves as a relevant indicator. In October, 11,544 units were sold, a decline from the 12,799 recorded in September (-9.8%), but an increase compared to October 2025 (10,787 units, or +7.0%).

Considering the 209 accumulated business days until October, solid growth of 17.2% was maintained, surpassing the annual average of major global markets. However, no forecast was established for November, December, and the end of the year. Anfavea projects the sale of 3.1 million vehicles for this year, but may adjust this estimate at an event next Wednesday.

In international comparison, the China Passenger Car Association, the largest global entity with objectives similar to Anfavea in Brazil, does not include trucks, buses, or agricultural machinery. The projection for the end of 2026 forecasts the sale of 18.5 million units, representing a drop of about 22% compared to the 23.74 million sold in 2025, interrupting a five-year streak of continuous growth. This justifies the export strategy and the offering of attractive prices.

Model Review and Launches

Honda maintains its compact City line, developed since 2009. Initially equipped with the same engine as the Fit, it sold almost 250,000 units in the first ten years. For the 2027 model, besides the hatchback and sedan versions (accounting for about 30% and 70% of sales, respectively), there is the RS version of the hatch, which has undergone no mechanical changes but possesses a notable aesthetic appeal, such as pearl black roof and mirror casings.

The Japanese brand conducted an evaluation of the two versions on a trip from São Paulo to São Roque (SP). Even without mechanical modifications, the 1.5 L four-cylinder flex engine generates 126 hp (E/G) and produces 15.8 kgf·m (E) and 15.5 kgf·m (G). It differs from the newer 1 L turbo engines. The CVT automatic transmission was maintained. In terms of performance, the difference compared to the 1 L turbo engines predominant in the market and with lower taxes is not that significant. During overtaking, the noise increases slightly more than in turbo engines, but it is not bothersome in daily use.

In terms of fuel consumption (using gasoline), the City performed well, maintaining an average between 16 and 17 km/L according to the onboard computer, even under strain on certain stretches. The vehicle features a new 10-inch multimedia screen, allowing volume control with fingers without removing physical buttons, in addition to wireless mirroring for Android Auto and Apple CarPlay. The hatch preserves the Honda Magic Seat system, offering four interesting rear seat configurations, although this results in a slight weight increase.

A negative point observed during the preliminary evaluation was that when activating the right turn signal, the image projected on the multimedia screen overlaps the Waze or Google Maps map, ideally it should not occupy the entire screen.

Prices range between R$ 117,700 and R$ 156,400 for the hatch, and between R$ 117,700 and R$ 154,300 for the sedan.

New Players in the Brazilian Market

BAIC's plans in the Brazilian market are ambitious. The company will start with 50 dealerships and plans to triple its network by 2027, in addition to studying the installation of a factory in Brazil. The Arcfox T1 attracts attention due to its wide dimensions, starting with a wheelbase of 2,770 mm (204 mm more than a Polo, for example). The manufacturer reports a trunk capacity of 459 liters, although this value does not follow the VDA standard, being more realistic for volume measurement. The Chinese model also included a spare tire and sought to adapt to the Brazilian consumer, despite still lacking the cord to raise the internal trunk lid. As an advantage, it has electric opening, something uncommon in this segment.

Although its design is discreet, the interior offers very comfortable space for a five-seater compact, including the rear seat, surpassing other models in the immediately higher category. The front seats are comfortable and offer good lateral support. Physical buttons have been removed, such as air conditioning controls, mirror adjustments, and panoramic roof opening. Furthermore, there is no native support for Android Auto from the factory. The interior finish and materials are considered good, consistent with the suggested price.

The initial evaluation took place on a short 14 km route, divided equally between Comfort and Sport modes. The calibration difference between the two options is quite noticeable. This electric hatch does not aim to stand out for superior performance compared to combustion models, as often happens. With modest power and torque of 95 hp and 17.8 kgf·m, it reaches 0 to 100 km/h in 12.4 seconds (compared to 10.5 s for the Polo). The onboard computer registered good consumption of 10.7 kWh/100 km.

The Advanced Driver Assistance Systems (ADAS) demonstrated good calibration and ease of use, functioning well in lane centering. In curves, the steering could be more communicative. A positive highlight is the assistant that reduces the turning diameter at low speeds to aid in maneuvers.

The prices for the Arcfox T1 are from R$ 129,990 to R$ 139,900.

Omoda & Jaecco SUV Coupe

With redesigned grille and bumper, as well as new taillights and 18-inch wheels, the compact SUV coupe from Omoda & Jaecco has dimensions close to mid-size models, thanks to a wheelbase of 2,630 mm, length of 4,424 mm, and a trunk capacity of 372 L. The main innovation is the front electric motor, which delivers 210 hp and 29.4 kgfm. There are two battery options: 50.6 kWh in the Elite version and 60.9 kWh in the Prestige version. Fast charging can reach 130 kW, allowing travel from 30% to 80% in 16 minutes (the process from 20% to 100% takes over two hours on fast chargers).

Internally, the most significant change is in the dashboard, which received a new command organization, an 8.8-inch instrument panel, and a 15.6-inch multimedia center. The gear lever is located on the steering column, freeing up space in the center console. The vehicle also features a panoramic sunroof, wireless phone charging, wireless connectivity for Android Auto and Apple CarPlay, and a 540-degree view camera. The top-of-the-line version features front seats with electric adjustment, heating, ventilation, and massage.

The safety package includes seven airbags and 15 driver assistance features, grouped in the ADAS 2.5 system. These features include adaptive cruise control, blind spot monitoring, and collision avoidance assistance.

In urban traffic, the vehicle stands out for its silence and immediate response to the accelerator, a characteristic of all electric vehicles. The light steering facilitates maneuvers and provides smooth driving. The suspensions absorb road imperfections well. On a trip from São Paulo to Serra do Japi, it was confirmed that the focus is on comfort, without exaggeration, while the engine excelled in quick responses that aided overtaking. It accelerates from 0 to 100 km/h in 7.2 seconds.

Prices range between R$ 159,990 and R$ 184,990.

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According to FADA data, car sales in October 2026 showed a decline compared to last year
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According to FADA data, car sales in October 2026 showed a decline compared to last year

According to FADA, retail car sales in October amounted to 3.172 million units, representing a 23.80% drop year-on-year. However, compared to September, sales increased by 25.05%.

Experts note that the high baseline sales level last year was due to increased demand after the Diwali holidays and the reduction in GST. Since Diwali falls in November this year, it is expected that a significant portion of consumer purchases will shift to the next month.

FADA emphasizes that to fully understand the October figures, one must consider the holiday calendar and the results of the previous year's sales. In October 2025, Navratri and Diwali coincided, and last year's sales were also influenced by the increased demand following the reduction in GST on September 22, 2025. This year, Navratri fell in October, while Dhanteras and Diwali are scheduled for November.

Despite the overall decline compared to last year, FADA believes that the growth in October 2026 sales compared to September is a positive sign for seasonal purchases. Nevertheless, an accurate assessment of demand growth will only be possible based on November sales data, as Dhanteras falls on November 6 and Diwali on November 8.

According to FADA reports, October 2026 was the second-best October in terms of total retail sales volume. The commercial vehicle, three-wheeler, and tractor segments set record figures in October.

The analysis showed varying trends year-on-year and month-on-month for different transport categories. In October, 2.321 million two-wheelers were sold, which represents a 28.35% drop compared to last year, but an increase of 29.67% compared to September. This segment is heavily dependent on rural demand and holidays.

Regarding passenger vehicles, including cars and SUVs, 507,768 units were sold. The year-on-year decline in this segment was 14.23%, but there was an 18.86% increase compared to September. This marked the third highest sales figure for passenger vehicles in October.

Truck and other commercial vehicle sales reached 115,140 units, showing a 2.29% increase year-on-year and 11.19% month-on-month. Growth in this segment was supported by demand for heavy and medium commercial vehicles. In October, 141,420 three-wheelers were sold, corresponding to a 3.97% increase year-on-year and 6.68% compared to September. This segment recorded the highest retail sales volume for October.

Tractor sales totaled 79,285 units, demonstrating a 3.10% increase compared to last year and 3.09% compared to September, driven by agricultural demand. Sales of wheeled construction equipment amounted to 7,434 units, which is 22.07% higher year-on-year and 14.62% month-on-month.

The two-wheeler segment saw the most significant sales decline in rural areas: a year-on-year decrease of 33.97%, and 20.77% in urban areas. Passenger vehicles also showed a decline: 12.44% in rural areas and 15.30% in cities. Overall, the sales drop in the rural sector was 28.59%, while in urban areas it was 18.07%. FADA expects an improvement in the situation in November in rural and northern regions following a weak October.

Electric vehicle sales reached approximately 355 thousand units in October, the highest level in history. EV sales grew by 44.88% year-on-year and accounted for about 11.5% of total sales, up from 6% in October last year. In the three-wheeler segment, the share of EVs reached 62.63%, and the use of alternative fuels also increased in the passenger vehicle segment.

In October, the share of gasoline and ethanol vehicles was 41.60%, while the combined share of CNG, LPG, hybrid, and electric vehicles reached 41.83%, indicating that the share of alternative fuel slightly exceeded the share of gasoline in passenger vehicle sales.

According to an online survey of FADA members, 51.65% of dealers expect sales growth in November 2026. Furthermore, 34.71% forecast stability, and 13.64% predict a decline. Holidays in November are expected to support consumer demand. FADA forecasts an increase in sales in rural and northern regions, although risks remain related to post-holiday demand drops, vehicle availability, and rising loan payments.

Stock markets rise in the US after elections despite Trump's defeat
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Stock markets rise in the US after elections despite Trump's defeat

Following the results of the midterm elections in the US, increased enthusiasm is observed on stock exchanges, and American markets are showing signs of significant growth. Similar growth is also noted in Asian markets. However, in India, this growth is driven not only by the results of the US elections but also by falling crude oil prices and expectations of a reduction in Long-Term Capital Gains (LTCG) tax.

During the 2026 US elections, Donald Trump's Republican Party suffered a serious defeat. The Democratic Party gained a majority in both chambers of the American parliament—the Senate and the House of Representatives. This is interpreted as an expression of voter dissatisfaction with the Trump administration. Previously, Democrats led in the House of Representatives with 224 out of 435 seats and in the Senate with 54 seats.

These results triggered a rise in the American market. The Dow Futures index shows a remarkable increase, rising by 770 points or 1.49 percent to 52,557. It should be noted that before the results were announced, this index fell by one percent but then recovered by approximately two percent from its low point.

Significant growth was also recorded in the Chinese market, where the index rose by 2.16 percent to 3,686.17, and the Hang Seng index saw a growth of 1.67 percent. Furthermore, the Kospi showed a growth of 0.62 percent, and the UK market grew by 0.30 percent.

The Indian market also demonstrated steady growth in the main indices Sensex and Nifty. The reason for this was the decrease in crude oil prices by about one percent and growing expectations of LTCG reduction. Nifty increased by 100 points, while Sensex grew by more than 350 points.

The results of the US midterm elections indicated an important shift in the future. Analysis of data from the past 11 periods since 1982 shows that in eight cases, the American benchmark index S&P 500 showed an average positive return of 10 percent over the following three months. ICICI Direct reported that in India, the stock index showed an average positive return of 12 percent in six cases since 1982.

Tanay Dalal, Senior Vice President of Economic Research at Axis Bank, noted that the Democrats' victory in the US midterm elections appears more convincing than many experts expected, and some traditionally strong Republican bastions are under pressure. He suggested that one possible consequence could be the adoption of a more divided approach to artificial intelligence (AI) regulation. For India, this could be a positive development, as a less unified regulatory environment can support demand for export business services and outsourced technology.

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