Marcopolo expects demand in the Argentine bus market to recover in 2027 as fleet renewal needs and a transition to gas fuel drive sales.
Chief executive André Armaganijan announced the outlook during an investor presentation on Wednesday, September 9. He noted that Argentina has failed to replace its bus fleet at the necessary pace since 2018, but is now displaying signs of economic stabilization.
The Argentine market generated 875.4 million Brazilian reais in net revenue for the group in 2025. However, sales in the country slowed during the first half of 2026, reaching just 212.1 million reais.
Marcopolo, headquartered in southern Brazil, is one of the world's largest bus body manufacturers, producing vehicles for urban transit and intercity passenger transport. Argentina is South America's second-largest economy, where commercial transport networks rely heavily on long-distance and municipal bus routes to move passengers across the country.
European expansion and North American trade
Beyond South America, Marcopolo will launch operations in Europe later this month, presenting its new G8 Tec model in Madrid, Spain. Initial distribution will cover Spain, France, Italy, and Portugal.
Armaganijan stated that intense competition between Chinese and European vehicle manufacturers led to the closure of bodywork factories in Europe. He said this consolidation severely reduced the local supply of bodywork, creating a major commercial opportunity for the Brazilian manufacturer.
European bus operators increasingly rely on external bodywork builders to assemble specialized passenger vehicles onto standard industrial chassis. Demand for new coaches in Western Europe is driven by stringent municipal emissions regulations and local public transit modernization contracts.
Armaganijan also identified Mexico as a promising market for fleet renewal, despite commercial uncertainties stemming from trade tariffs imposed by the United States. In Australia, the executive expects company performance to remain stable in 2027.
Domestic market opportunities in Brazil
In Brazil, chief financial officer Pablo Motta identified significant opportunities in the urban bus segment, likely starting in 2027. Motta cited an upcoming cycle of municipal concessions and the reorganization of public transit networks in major cities, including Curitiba and Rio de Janeiro.
Curitiba is renowned for its pioneer bus rapid transit system, while Rio de Janeiro operates one of the continent's largest urban transit networks. Municipal concession cycles in Brazil grant long-term operating licenses to private bus companies, which routinely purchase large batches of new vehicles to meet contractual service standards.
Following the presentation, Marcopolo preferred shares fell 2.5 percent on Wednesday to close at 4.20 reais. The stock has accumulated a loss of more than 20 percent over the course of the year.
Marcopolo plans to begin its European deployment in Madrid before the end of the month as it prepares for expected fleet replacement cycles across its major global markets.
