1. Home
  2. / Automotivo
  3. / Brazil becomes the world's largest market for Chinese electric cars. The new incentive policy and the quick response from automakers drive the growth of the local automotive market
reading time 3 min read Comments 1 comments

Brazil becomes the world's largest market for Chinese electric cars. The new incentive policy and the quick response from automakers drive the growth of the local automotive market

Written by Noel Budeguer
Published 28/05/2024 às 11:14
Electric cars - Brazil - import - BYD -

Exports of Chinese electric cars to Brazil grow 13 times. The country leads the global market, standing out as a key destination for automakers such as BYD and GWM

Brazil now leads exports of Chinese electric and plug-in hybrid cars, overtaking Belgium. According to recent sector data, Brazil overtook Belgium as the main export destination for electric and plug-in hybrid vehicles manufactured in China. This significant advance comes at a crucial time, as Chinese automakers seek to diversify their sales to markets outside Europe.

This strategy is a direct response to the European Union's subsidy investigation into Chinese electric cars, which has affected its exports to the European continent.

Investments by Chinese Automakers in Brazil

According to the Chinese Passenger Car Association (CPCA), exports of electric and plug-in hybrid cars to Brazil increased 13 times compared to the previous year, reaching 40.163 units in April. This impressive growth positioned Brazil as the main export market for the second consecutive month. In January, the country occupied only tenth place in this ranking.

This change in the market was rapid. Chinese automakers, such as BYD, are investing heavily in Brazil. BYD is building an electric car manufacturing complex in the country, with plans to begin local production by the end of the year or early 2025. Similarly, GWM announced that its plant in Brazil will begin operating in the second half of 2024. In addition to these, other Chinese manufacturers are expected to announce new ventures in the Brazilian market soon.

Comparison with Other Markets

In April, Brazil also stood out as the second largest export destination for Chinese automobiles of all types, behind only Russia. Despite Western sanctions, Russia continues to be the main export market for Chinese vehicles, as highlighted by Cui Dongshu, secretary general of the CPCA.

CPCA data reveals a significant drop in imports of Chinese electric cars by European countries such as Spain, France, the Netherlands and Norway between January and April. The European Union's subsidy investigation has impacted exports to the bloc, forcing Chinese automakers to actively seek alternative markets in South America, Australia and Southeast Asia.

Promising Future for Brazil

In the first four months of this year, exports of Chinese electric cars to Russia increased by 23%, totaling 268.779 vehicles. In the same period, exports to Mexico and Brazil increased by 27% and 536%, respectively, reaching 148.705 and 106.448 units.

The growing demand for new energy vehicles in Brazil, combined with the strategic expansion of Chinese automakers, highlights the country as a key market for electric and hybrid cars, especially at this time of resistance in Europe and the USA. Furthermore, Brazil's new policy to encourage local car production should open up significant opportunities for the automotive industry in the coming years.

Register
Notify
guest
1 Comment
Older
Last Most voted
Feedbacks
View all comments
Noel Budeguer

Of Argentine nationality, I am a news writer and specialist in the field. I cover topics such as science, oil, gas, technology, the automotive industry, renewable energy and all trends in the job market.

Share across apps
0
We would love your opinion on this subject, comment!x
()
x