Brazil Vehicle Recycling Market Size, Share, Trends and Forecast by Type, Material, Application, and Region, 2025-2033

Brazil Vehicle Recycling Market Overview:

The Brazil vehicle recycling market size reached USD 2,012.91 Million in 2024. The market is projected to reach USD 6,217.53 Million by 2033, exhibiting a growth rate (CAGR) of 13.35% during 2025-2033. The market is driven by the implementation of comprehensive circular economy strategies and national regulatory frameworks promoting sustainable material recovery, the rapid adoption of electric vehicles necessitating advanced battery recycling infrastructure and specialized dismantling capabilities, and the enforcement of the MOVER Program establishing mandatory recyclability standards and tax incentives for manufacturers prioritizing end-of-life vehicle management. Additionally, increasing government investments in recycling infrastructure and growing environmental awareness among automotive manufacturers are expanding the Brazil vehicle recycling market share.

Brazil Vehicle Recycling Market Trends:

Government-Led Circular Economy Transition and Comprehensive Regulatory Framework Development

The Brazilian federal government has established a transformative regulatory foundation for vehicle recycling through the implementation of comprehensive circular economy initiatives that are fundamentally reshaping the automotive waste management landscape. In June 2024, the Brazilian federal government published Federal Decree No. 12,106/2024, regulating tax incentives for the recycling production chain established under Federal Law No. 14,260/2021. The decree enables individuals and legal entities to deduct up to 6 percent of income tax for individuals and 1 percent for legal entities when supporting approved recycling projects, specifically including infrastructure adaptation for vehicle recycling facilities and acquisition of equipment for material processing and treatment. The strategic framework prioritizes waste prevention, material circulation, protection of natural resources, and extended product lifecycles specifically targeting the automotive sector as one of the priority industries for sectoral plan development. The government has also enacted Federal Decree No. 12,106/2024 in July 2024, which regulates tax incentives for the recycling production chain, enabling individuals and legal entities to deduct up to six percent and one percent of income tax respectively when supporting approved recycling projects including infrastructure adaptation for vehicle recycling facilities. These coordinated policy initiatives are creating unprecedented opportunities for formal recycling operators while establishing clear compliance pathways that are accelerating the professionalization and technological advancement of Brazil's vehicle recycling industry.

MOVER Program Implementation Establishing Mandatory Sustainability and Recyclability Standards

The Brazil vehicle recycling market growth is being substantially propelled by the comprehensive implementation of the Green Mobility and Innovation (MOVER) Program which integrates environmental performance requirements directly into automotive manufacturing and establishes financial mechanisms rewarding sustainability investments. The Brazilian federal government enacted the MOVER Program in June 2024, incorporating minimum recyclability requirements in vehicle manufacturing and implementing a Green Tax on Industrialized Products (IPI) that applies differential taxation based on emissions levels and environmental performance including recyclability metrics. The program provides substantial tax incentives totaling BRL 19 Billion through 2028 for companies investing in decarbonization operations and sustainable mobility solutions, with Decree No. 12,549 introduced in 2025 establishing new tax incentives based on vehicle propulsion technology, fuels, engine power, and critically, recyclability standards that reward manufacturers designing vehicles for end-of-life material recovery. The MOVER framework also mandates lifecycle carbon measurement and establishes graduated standards through 2031 under the PROCONVE L-8 regulations, creating long-term predictability that enables recyclers to invest confidently in specialized equipment and processing capabilities aligned with future vehicle compositions and material flows.

Brazil Vehicle Recycling Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on type, material, and application.

Type Insights:

• Passenger Cars Recycling
• Commercial Vehicles Recycling

The report has provided a detailed breakup and analysis of the market based on the type. This includes passenger cars recycling and commercial vehicles recycling.

Material Insights:

• Iron
• Aluminium
• Steel
• Rubber
• Copper
• Glass
• Plastic
• Others

A detailed breakup and analysis of the market based on the material have also been provided in the report. This includes iron, aluminium, steel, rubber, copper, glass, plastic, and others.

Application Insights:

• OEMs
• Aftermarket

The report has provided a detailed breakup and analysis of the market based on the application. This includes OEMs and aftermarket.

Regional Insights:

• Southeast
• South
• Northeast
• North
• Central-West

The report has also provided a comprehensive analysis of all the major regional markets, which include Southeast, South, Northeast, North, and Central-West.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Brazil Vehicle Recycling Market News:

• August 2025: Stellantis inaugurated its first Circular Vehicle Disassembly Center in South America, located in Brazil. This pioneering facility represents the first industrial operation in South America dedicated to vehicle disassembly by an automaker, with capacity to process up to 8,000 end-of-life and totaled vehicles annually through systematic decontamination and component recovery processes, potentially preventing up to 30,000 tons of CO₂ emissions each year.

Brazil Vehicle Recycling Market Report Coverage:

Key Questions Answered in This Report:

• How has the Brazil vehicle recycling market performed so far and how will it perform in the coming years?
• What is the breakup of the Brazil vehicle recycling market on the basis of type?
• What is the breakup of the Brazil vehicle recycling market on the basis of material?
• What is the breakup of the Brazil vehicle recycling market on the basis of application?
• What is the breakup of the Brazil vehicle recycling market on the basis of region?
• What are the various stages in the value chain of the Brazil vehicle recycling market?
• What are the key driving factors and challenges in the Brazil vehicle recycling market?
• What is the structure of the Brazil vehicle recycling market and who are the key players?
• What is the degree of competition in the Brazil vehicle recycling market?

Key Benefits for Stakeholders:

• IMARC's industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Brazil vehicle recycling market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Brazil vehicle recycling market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Brazil vehicle recycling industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.