South America Automotive Forging Market, By Country, Competition, Forecast & Opportunities, 2020-2030F

The South America Automotive Forging Market was valued at USD 9.41 Billion in 2024, and is expected to reach USD 12.47 Billion by 2030, rising at a CAGR of 4.80%. The South America automotive forging market is experiencing steady growth, driven by rising vehicle production, the recovery of automotive manufacturing post-COVID-19, and growing demand for lightweight, fuel-efficient vehicles.

The region's focus on enhancing fuel efficiency and reducing vehicle emissions has led to a surge in demand for forged components, especially those made from aluminum and advanced high-strength steels, as automakers aim to meet stringent environmental regulations. Brazil, being the largest automotive hub in South America, significantly contributes to regional market dynamics with robust manufacturing infrastructure and OEM presence. Technological advancements in forging techniques - such as precision forging and closed-die forging - are helping manufacturers improve product strength and durability while reducing material waste and machining time.

Key Market Drivers

Rising Demand for Lightweight and Fuel-Efficient Vehicles

One of the primary drivers of the South America automotive forging market is the increasing demand for lightweight and fuel-efficient vehicles. As global climate change concerns intensify and fuel prices remain volatile, regulatory bodies across South America are aligning with global emission standards, prompting automakers to innovate in material usage and design. Forging, particularly using lightweight materials such as aluminum and advanced high-strength steel (AHSS), plays a critical role in reducing the overall weight of vehicles while maintaining structural integrity and durability.

Brazil’s National Association of Vehicle Manufacturers (ANFAVEA) reports production of 2.55 million vehicles in 2024, marking a 9.7% increase from 2023 - ushering Brazil back into the 8th spot globally. The breakdown includes nearly 1.9 million passenger vehicles and over 485,000 commercial vehicles, representing year over year growth of about 6-15% across various segments. Lightweight forged components such as crankshafts, connecting rods, and gears are essential in improving fuel economy and lowering emissions.

With governments in major countries like Brazil and Argentina implementing fuel efficiency targets and incentivizing eco-friendly automotive technologies, manufacturers are increasingly turning to forging solutions to meet these requirements. This shift toward material innovation has led to a significant rise in the adoption of aluminum-forged parts in internal combustion engine (ICE) vehicles as well as hybrid and electric vehicles (EVs). The integration of lightweight forged parts not only enhances fuel efficiency but also boosts engine performance and prolongs component life, offering end-users both economic and performance benefits. As consumer awareness of environmental sustainability continues to grow, automakers are compelled to offer greener mobility solutions, thereby strengthening the demand for forging in the region’s automotive value chain.

Key Market Challenges

Fluctuating Raw Material Prices and Supply Chain Disruptions

One of the most significant challenges confronting the South America automotive forging market is the volatility in raw material prices, particularly for steel and aluminum, which are the primary inputs in forging operations. The cost of these metals is influenced by global market dynamics, including mining output, international trade tensions, and energy prices. In recent years, geopolitical instability, such as trade disruptions between major economies and sanctions on raw material exporters, has caused considerable fluctuations in input costs. For South American forging companies, which often depend on imported raw materials due to limited local production, such price volatility can erode profit margins and disrupt long-term planning.

Compounding this issue are logistical inefficiencies and port delays, especially in countries like Argentina and Brazil, where infrastructure constraints impact the timely import of forging-grade alloys and components. Additionally, the COVID-19 pandemic exposed deep vulnerabilities in global supply chains, including prolonged lead times and unavailability of critical materials, which resulted in production delays for automotive OEMs and Tier 1 suppliers across the region. Although markets have gradually recovered, the forging industry remains sensitive to such disruptions. Smaller local forging firms, in particular, lack the financial and operational flexibility to absorb these shocks, making them more vulnerable to material shortages and cost escalations. Unless regional raw material supply chains are strengthened and diversified, the unpredictability in pricing and availability will continue to hamper the forging sector’s competitiveness and stability.

Key Market Trends

Rising Integration of Automation and Industry 4.0 in Forging Processes

A prominent trend transforming the South American automotive forging industry is the increasing integration of automation, digitalization, and Industry 4.0 technologies. As global forging markets shift toward smarter, more connected manufacturing ecosystems, South American forging firms are beginning to invest in robotics, real-time process monitoring, and computer-aided design (CAD) tools to enhance productivity and consistency. Automation in forging lines - such as robotic handling of billets, automated die lubrication systems, and real-time dimensional inspection - reduces human error, increases throughput, and minimizes downtime.

Moreover, the deployment of data analytics and predictive maintenance systems enables manufacturers to optimize energy consumption, reduce scrap rates, and extend the life of critical equipment. While the adoption curve in South America lags behind that of North America and Europe, early movers in Brazil and Argentina are collaborating with global technology providers to upgrade their facilities. These advancements not only boost competitiveness but also help forging firms comply with stricter OEM quality standards and international certifications. The rise of Industry 4.0 is particularly valuable in forging operations, where real-time temperature and pressure control significantly influence product quality. As more forging companies embrace smart manufacturing, the region is likely to see improved efficiency, lower operational costs, and enhanced responsiveness to the evolving needs of automotive manufacturers.

Key Market Players

• Nanjin Automobile Forging Co Ltd
• ThyssenKrupp AG
• Bharat Forge Limited
• Meritor Inc
• Aichi Forge USA Inc
• Kovarna Viva
• CIE Automotive SA
• Dana Inc
• NTN Corporation
• American Axle & Manufacturing Inc.

Report Scope:

In this report, the South America Automotive Forging market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

South America Automotive Forging Market, By Vehicle Type:

• Passenger Cars
• Light Commercial Vehicles
• Heavy Commercial Vehicles

South America Automotive Forging Market, By Material:

• Aluminium
• Steel
• Others

South America Automotive Forging Market, By Component:

• Gears
• Piston
• Bearing
• Axel
• Connecting Roads
• Crankshaft
• Others

South America Automotive Forging Market, By Country:

• Brazil
• Argentina
• Columbia

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the South America Automotive Forging market.

Available Customizations:

With the given market data, the publisher offers customizations according to a company's specific needs. The following customization options are available for the report.

Company Information

• Detailed analysis and profiling of additional market players (up to five).