Stellantis Challenges SUV Profitability Assumptions in Booming Brazilian Market

**SUV Demand in Brazil: Stellantis President Challenges Common Assumptions** Brazil's automotive market is experiencing a significant shift. SUVs have overtaken hatchbacks as the most sought-after vehicles, representing 53% of new car sales in 2025. This trend has prompted questions about profitability. However, in an exclusive interview with g1, Emanuele Cappellano, president of Stellantis in South America, offered a different perspective. "The profitability isn't necessarily linked to the shape or size of the car," Cappellano stated. "It's more about production scale, the technologies used, and the demand." He highlighted that while SUVs are currently in high demand, the focus for manufacturers should be on efficient production and meeting market needs. The data supports Cappellano's view. While hatchbacks like the Fiat Argo, Volkswagen Polo, and Chevrolet Onix once dominated the market, the rise of more affordable SUVs, such as the Volkswagen Taos, Citroën C5 Aircross, and Renault Duster, has dramatically altered the landscape. Cappellano's insights provide valuable context to the dynamic Brazilian automotive market and challenge the assumption that SUVs automatically translate to higher profits. This shift in consumer preference and the industry's response presents a fascinating case study in market adaptation and the evolving relationship between consumer demand and manufacturer strategy.