Paraguay's automotive sector is experiencing a significant expansion cycle, driven by exchange rate stability, greater availability of financing, and growing demand for new vehicles. According to the Central Bank of Paraguay (BCP), the sale and maintenance of vehicles led commercial dynamism, with a year-on-year expansion of 20.6%, contributing to the accumulated 4.5% growth recorded by the Business Figures Estimator (ECN).
The stability of the dollar has been a key factor, allowing importers to plan operations with greater predictability and dealerships to sustain offers in guaranis and dollars. The dollar exchange rate in this context remains favorable, with economic agents projecting a rate of G. 6,150 by the end of 2026, below previous estimates of G. 6,300.
In addition to exchange rate stability, the wide availability of credit has accelerated sales. Banks, cooperatives, finance companies, and the dealerships themselves compete with plans that include reduced or even zero down payments, financing terms of up to 60 months, and fixed installments in guaranis, reducing buyers' exposure to exchange rate volatility.
Consumer preferences include pickup trucks and sport utility vehicles (SUVs), with the Toyota Hilux, Chevrolet S10, Nissan Kicks, Fiat Strada, and Hyundai HB20 among the most sought-after models. Toyota leads in brand share with 13.9%, followed by Kia (11.7%), Chevrolet (9.8%), Hyundai (9.2%), and Volkswagen (7.3%).
Data from the Chamber of Automobile and Machinery Distributors (CADAM) confirm the growth: in 2025, 38,611 new vehicles were imported, an increase of 11.3% over the previous year. In the first quarter of 2026, imports of zero-kilometer vehicles reached 10,562 units, with year-on-year growth of 31.7%. Paraguay recorded one of the largest sales growths for new vehicles in the region, with an increase of 177.2%.
Brazil remains the main origin of imports (35.6%), followed by China (20.6%) and Argentina (11.3%). Although gasoline vehicles still represent 38.1% of imported units, hybrids and electric vehicles grew 65.7% in 2025, reaching 4,049 units and representing over 10% of the formal market.
While the automotive sector prospers, exchange houses face a less favorable scenario. The sector's profits in the first half of 2026 fell to about half of those recorded in the same period of 2025, reflecting greater exchange rate stability and the reduction in volatility that had benefited intermediation.
This performance contrasts with the first half of 2025, when exchange houses recorded significant gains driven by a dollar exchange rate that came close to G. 8,000 at retail. The normalization of the currency market in 2026 forces the sector to rely more on volume and operational efficiency than on extraordinary currency movements.