South America Automotive Forging Market to Grow with a CAGR of 4.8% through 2030

The South America automotive forging market is growing due to rising vehicle production, industrial localization efforts, aftermarket expansion, and increasing demand for durable, high-performance components across commercial and passenger vehicle segments.

According to TechSci Research report, “South America Automotive Forging Market – By Region, Competition, Forecast & Opportunities, 2030F”, 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 with a CAGR of 4.8% during the forecast period. The South America automotive forging market is evolving in response to a combination of industrial modernization, shifting vehicle production dynamics, and the rising demand for resilient supply chains. While traditional drivers like vehicle production and material strength remain relevant, the region’s forging industry is increasingly being shaped by its push for technological self-reliance and reduced import dependence. Several local governments are promoting industrial revitalization strategies aimed at strengthening domestic component manufacturing capabilities, including forging, to reduce reliance on imported parts and boost employment. This has spurred investment in modernization of forging facilities, adoption of advanced automation, and localization of tooling capabilities. Moreover, there is a growing emphasis on improving the quality and durability of forged components, driven by increased safety regulations and the expanding demand from performance-sensitive applications such as logistics, fleet services, and cross-border transport. The region’s expanding aftermarket for commercial and passenger vehicles is also creating new opportunities for forging players, especially for replacement parts and customized forging solutions.

However, the market faces several pressing challenges that temper its full potential. One major issue is the high cost of energy and raw materials, which directly impacts the economics of forging processes and squeezes margins for smaller manufacturers. Inconsistent power supply, especially in remote or underdeveloped industrial zones, limits the scalability of forging operations. Additionally, the lack of skilled labor and limited access to specialized training in precision forging technologies restrict the growth of high-quality local production. Bureaucratic hurdles and uneven regulatory enforcement across countries in the region also complicate cross-border manufacturing and component standardization. As a result, while opportunities for innovation and growth exist, forging companies must navigate a fragmented market with varied infrastructure readiness and investment climates, necessitating a tailored, localized approach to succeed in the South American automotive forging industry.

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The South America Automotive Forging market is segmented into material, vehicle type, component and region.

Based on material, the Aluminium Material segment is emerging as the fastest-growing market segment, driven by the rising demand for lightweight vehicles and the surge in urban last-mile delivery services. As LCV manufacturers seek to reduce fuel consumption and emissions, forged aluminium components—particularly in suspension systems, engine parts, and structural applications—are being rapidly adopted. This shift is fueled by the growing regulatory pressure on emissions and the push for fleet electrification in the commercial segment. Aluminium’s recyclability and corrosion resistance also contribute to its growing appeal, particularly in fleets that operate in diverse climatic conditions.

Based on country, Colombia is emerging as the fastest-growing country in the South American automotive forging market, fueled by its expanding automotive assembly and aftermarket sectors. The country is witnessing steady growth in light commercial vehicle demand, driven by increased e-commerce penetration, infrastructure development, and urbanization. As OEMs and suppliers invest in local assembly operations, demand for forged components such as axles, bearings, and suspension parts is on the rise. Government incentives for industrial development and vehicle modernization programs are further accelerating the adoption of advanced manufacturing technologies, including forging. Additionally, Colombia’s strategic location, access to both Pacific and Atlantic ports, and improving road logistics network position it as a potential hub for regional distribution. The increasing presence of global Tier 1 suppliers and local forging companies collaborating on lightweight, high-performance components for hybrid and commercial vehicles is a key indicator of the country’s dynamic market momentum. These factors together position Colombia as the fastest-growing market in the region.

Major companies operating in South America Automotive Forging market are:

• 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

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“In recent years, in the wake of global supply chain disruptions and increasing import dependency, another emerging trend in the South American automotive forging market is the strategic focus on localizing supply chains and strengthening partnerships with regional OEMs. The COVID-19 pandemic exposed the risks of relying heavily on foreign imports—particularly from Asia and Europe—for critical automotive components. In response, several South American governments and industry bodies are now promoting local production capabilities through industrial policies, tax incentives, and foreign direct investment (FDI) facilitation. Forging companies are benefiting from this shift, as OEMs seek reliable, locally-based suppliers who can offer short lead times and cost-effective logistics.” Said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

"South America Automotive Forging Market, By Material (Aluminium, Steel, Others), By Component (Gears, Piston, Bearing, Axel, Connecting Roads, Crankshaft, Others), By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles), By Country, Competition Forecast & Opportunities 2020-2030F”, has evaluated the future growth potential of South America Automotive Forging market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the South America Automotive Forging market.

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