Rio de Janeiro’s streets offer a stark visual representation of China’s escalating ambitions in the global automotive market. Electric vehicles, bearing the badges of Chinese manufacturers like BYD and Great Wall Motor, are increasingly common sights, signaling a significant shift in Brazil’s automotive landscape.
“There are a lot of Chinese cars on the streets,” notes Sérgio Ramalho, an EV owner in Rio, reflecting a sentiment echoed across the nation.
Brazil has rapidly emerged as a key battleground in the burgeoning electric vehicle market, with Chinese automakers leading the charge. In 2024, the country imported approximately 138,000 electric and hybrid vehicles from China, a surge of nearly 100,000 units compared to the previous year, according to data from Brazilian customs authorities. This influx underscores China’s strategic pivot towards emerging economies, particularly in light of limited access to the U.S. market.
“Chinese EV makers are facing a lot of pressure within China,” explains Ilaria Mazzocco, deputy director at the Center for Strategic and International Studies. “They’ve been going abroad in a very big way,” seeking new avenues for growth and market share.
As South America’s largest car market, Brazil presents a lucrative opportunity for Chinese EV firms. These companies directly compete with established global brands, offering consumers a compelling combination of affordability and technology. By early 2025, Chinese models had captured over 80% of all EV sales in Brazil, according to figures from the Brazilian Electric Vehicle Association. This dominance is largely attributed to aggressive pricing strategies.
The affordability factor is exemplified by BYD’s Dolphin Mini, a top-selling electric car in the country. With a starting price of around 119,900 reais, or $22,000, it significantly undercuts General Motors’ cheapest comparable model in Brazil by approximately $7,000. This price advantage has proven to be a major catalyst for consumer adoption.
“We’ve seen the arrival of Chinese vehicles here in a very large quantity,” observes Gustavo Tannure, CEO of charging-network startup EZVolt. “Demand for charging is very high,” indicating a growing infrastructure need to support the expanding EV fleet.
Following Brazil’s decision to eliminate its 35% import tariff on EVs in 2015, BYD moved swiftly to establish a local presence. Initially focused on electric bus production, the company now operates a sprawling EV plant in the northeastern state of Bahia, which they tout as one of Latin America’s largest. This facility, built on the site of a former Ford plant, boasts a production capacity of up to 300,000 vehicles per year, marking a substantial investment in Brazil’s automotive future. The strategic decision to repurpose existing infrastructure also highlights BYD’s efficient approach to market entry.
“Brazil is the largest automotive market in Latin America,” Mazzocco states. “If you want to sell in Brazil, there’s a strong incentive to produce in Brazil,” highlighting the importance of local manufacturing to overcome potential trade barriers and maintain a competitive edge.
Other Chinese automakers are following suit. Great Wall Motor, for example, commenced vehicle production near São Paulo this year after acquiring a former Mercedes-Benz factory, further cementing China’s foothold in the Brazilian market. This trend suggests a long-term commitment to the region and a desire to establish a comprehensive automotive ecosystem.
However, this rapid influx of Chinese vehicles has sparked concerns among labor groups, who fear potential job losses and disruption to Brazil’s domestic automotive industry.
“It could lead to a huge number of vehicles arriving from China, threatening our jobs and production in Brazil,” warns Wellington Damasceno, executive director of the ABC Metalworkers’ Union. This sentiment reflects a broader anxiety about the potential impact of foreign competition on local employment.
In response to these concerns, the Brazilian government has reintroduced import duties on foreign EVs, with tariffs gradually increasing to reach 35% by 2026. This policy shift aims to protect domestic manufacturers and mitigate the potential negative consequences of increased import competition. The long-term effectiveness of this strategy remains to be seen, as it could impact the affordability of EVs and hinder Brazil’s transition to a greener transportation sector.
Despite these policy changes, Chinese automakers remain committed to investing heavily in the Brazilian market. Their long-term strategy appears to be focused on establishing an early foothold in emerging markets, shaping consumer preferences, and driving the adoption of electric vehicles. The scale and ambition of these investments suggest that China’s presence in Brazil’s automotive sector is likely to endure for the foreseeable future.
“The strategy really seems to be: Be the first company that starts selling EVs in new markets. Create the market,” concludes Mazzocco. “It’s very long-term thinking — and it’s changing markets on the ground in several emerging economies,” illustrating the profound impact of China’s strategic investments on the global automotive industry.
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