How Chinese EV makers are winning in Brazil

In the bustling streets of Rio de Janeiro, the presence of Chinese electric vehicles (EVs) is becoming increasingly visible, marking a significant shift in the global automotive landscape. Brands like BYD and Great Wall Motor are making a notable impact, with local EV owner Sérgio Ramalho observing, "There are a lot of Chinese cars on the streets." This trend underscores Brazil's emergence as a critical market for Chinese electric vehicle manufacturers. According to Brazilian customs data, approximately 138,000 electric and hybrid vehicles were imported from China in 2024, nearly doubling the figures from the previous year. With their traditional markets in the U.S. largely inaccessible, Chinese automakers are redirecting their efforts toward burgeoning economies. Ilaria Mazzocco, deputy director at the Center for Strategic and International Studies, noted, "Chinese EV makers are facing a lot of pressure within China. They've been going abroad in a very big way." As South America’s largest automotive market, Brazil presents a lucrative opportunity for these companies. Recent statistics from Brazil's Electric Vehicle Association indicate that by early 2025, over 80% of all EV sales in the country were attributed to Chinese models, highlighting their competitive edge against established brands. Cost-effectiveness plays a significant role in this success; for instance, BYD's Dolphin Mini, priced at approximately 119,900 reais (about $22,000), is considerably cheaper than similar offerings from General Motors. The influx of Chinese vehicles has also sparked increased demand for charging infrastructure. Gustavo Tannure, CEO of the charging-network startup EZVolt, remarked, "We've seen the arrival of Chinese vehicles here in a very large quantity. Demand for charging is very high." After Brazil eliminated its 35% import tariff on EVs in 2015, BYD rapidly expanded its presence in the country. Initially entering the market with electric buses, the company has established one of the largest EV manufacturing plants in Latin America in Bahia, expected to produce up to 300,000 vehicles annually. Mazzocco emphasized Brazil's significance, stating, "If you want to sell in Brazil, there's a strong incentive to produce in Brazil." Other Chinese manufacturers are following in BYD’s footsteps. Great Wall Motor has commenced vehicle production near São Paulo after acquiring a former Mercedes-Benz plant. However, this swift expansion has raised concerns among labor organizations. Wellington Damasceno, executive director of the ABC Metalworkers' Union, warned, "It could lead to a huge number of vehicles arriving from China, threatening our jobs and production in Brazil." In response, the Brazilian government has begun reinstating import duties, with tariffs on foreign EVs set to reach 35% by 2026. Additionally, BYD has faced scrutiny over allegations regarding labor conditions at its Bahia facility, although the company asserts a commitment to upholding human rights and labor laws. Despite these challenges, the aggressive investment strategies of Chinese automakers continue to reshape the market landscape in Brazil and beyond. Mazzocco highlighted the long-term vision of these companies: "Be the first to sell EVs in new markets and create the market. It's very long-term thinking — and it's changing markets on the ground in several emerging economies."