Bus maker Marcopolo looks to exports to offset Brazil market slowdown

By Michael Susin

CAXIAS DO SUL, Brazil, March 27 (Reuters) – Brazilian bus manufacturer Marcopolo aims to offset a slowdown in its domestic market in 2026 through growth in other Latin American countries and it also plans to enter the European market, executives told Reuters.

Chief Executive Andre Armaganijan said export markets will remain relevant this year after international operations, which include both exports and sales abroad, accounted for 45.4% of Marcopolo’s total net revenue in 2025, up from 36.3% in 2024.

“We had solid growth in 2025. Argentina was one of our major export markets, and now in 2026 we are starting to see other interesting markets,” Armaganijan said, highlighting strong activity in Peru and Bolivia and opportunities in Paraguay.

The Brazilian market, Armaganijan said, is expected to this year perform slightly below last year’s level as a prolonged period of high interest rates delays fleet renewals.

Brazil’s central bank kicked off a monetary easing cycle last week with a cautious 25-basis-point cut to 14.75%. It had previously kept the benchmark Selic rate at a near two-decade high of 15% since July, to try to curb inflation.

In 2025, Marcopolo’s domestic market revenue fell 10% year-on-year to 4.95 billion reais ($943.94 million).

EVENTUALLY AIMS FOR ASSEMBLY LINE IN EUROPE

In Europe, Marcopolo said it is seeking product certification.

It had announced late last year a partnership with Volvo to sell buses in France and Italy, with the Swedish company serving as prime contractor, ensuring sales and after-sales support in both markets.

Marcopolo is initially focusing on France, Italy, Portugal and Spain, and eventually plans to have a final assembly line on the continent, International Operations Director Jose Luiz Goes said.

($1 = 5.2440 reais)

(Reporting by Michael Susin; editing by Barbara Lewis)