Aquilo é novo.

Aquilo is a demonstrative pronoun used for that over there or that thing when it is farther away from the speaker and listener, or when the thing is more abstract or less specifically identified.

A very simple way to think about the three common forms is:

• isto = this
• isso = that
• aquilo = that over there / that thing over there

In Brazilian Portuguese, isto is less common in everyday speech than isso, but aquilo is still useful when you want to point to something more distant or less immediate.

Because aquilo is a neutral pronoun. It is used when you are referring to:

• something whose noun is not being stated
• an idea, situation, or unidentified thing
• something without specifying grammatical gender

By contrast:

• aquele = that for a masculine singular noun
• aquela = that for a feminine singular noun

For example:

• Aquele carro é novo. = That car is new.
• Aquela casa é nova. = That house is new.
• Aquilo é novo. = That thing / that over there is new.

É with an acute accent is the 3rd person singular form of the verb ser in the present tense:

• eu sou
• você/ele/ela é
• nós somos
• vocês/eles/elas são

The accent matters because e without an accent is usually just the word and.

So:

• é = is
• e = and

That accent changes both pronunciation and meaning.

Because novo is agreeing with aquilo, which is treated as a neutral/masculine form in this kind of structure.

In Portuguese, adjectives usually agree in gender and number with the noun or pronoun they describe:

• novo = masculine singular
• nova = feminine singular
• novos = masculine plural
• novas = feminine plural

Since aquilo is not feminine, novo is the natural form here:

• Aquilo é novo.

Portuguese often uses ser when describing something as having a defining or identifying quality, and estar for a temporary condition or state.

So:

• Aquilo é novo. = That is new.
  This usually means it is new by nature/status: recently made, recently bought, not old.

Compare:

• Aquilo está novo.
  This can mean it looks like new or is in like-new condition, even if it is not actually brand new.

So in your sentence, é novo is the normal choice for saying something is new.

A learner-friendly approximation is:

• aquilo ≈ ah-KEE-loo
• é ≈ EH
• novo ≈ NO-voo or NO-vu in many Brazilian accents

Putting it together:

• ah-KEE-loo EH NO-voo

A few notes:

• The stress in aquilo is on qui
• The stress in novo is on no
• In natural speech, é is short and clear

Usually, no. Aquilo normally refers to:

• an object
• a situation
• an idea
• something unidentified

Using aquilo for a person sounds strange or insulting, because it can make the person sound like a thing.

For people, Portuguese normally uses forms like:

• aquele homem = that man
• aquela mulher = that woman
• ele/ela = he/she

Yes, sometimes you can, especially in conversation, if the context is already clear.

Portuguese often drops things that are obvious from the situation. So if everyone knows what you are pointing at, É novo can work just fine.

But:

• Aquilo é novo. is clearer and more explicit.
• É novo. depends heavily on context.

For a beginner, including aquilo is often safer.

It is grammatically correct, but in real conversation people often use more specific wording, depending on what they are talking about.

For example, a Brazilian speaker might more naturally say:

• Isso é novo. if the thing feels closer in context
• Aquilo ali é novo. = That over there is new.
• Aquele carro é novo. = That car is new.

So Aquilo é novo is correct, but real-life speech often adds more context or uses a different demonstrative.

Aquilo ali adds extra emphasis on location, something like:

• that thing there
• that over there

So:

• Aquilo é novo. = That is new.
• Aquilo ali é novo. = That thing over there is new.

In spoken Brazilian Portuguese, adding ali can sound more natural when physically pointing something out.

Yes. Novo can mean:

• newly made
• recently bought
• not old
• new to someone
• another/replacement one in some contexts

Examples:

• Comprei um carro novo. = I bought a new car.
• Preciso de um novo celular. = I need a new cellphone.

In Aquilo é novo, the most natural meaning is simply that the thing is new rather than old or used.