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The electric car revolution in Brazil is being led by Chinese manufacturers, which are shaping the future of the national and global automotive industry.
At the closing of the “Summit Valor Econômico Brasil-China 2025”, held in Shanghai, the panel “Reinventing the Automotive Industry: The Acceleration of Electric Vehicles” brought to light a topic of great relevance for the future of the automotive market in Brazil.
In 2024, the electric and hybrid car segment in the country reached a historic record, with 177.358 registered electrified vehicles between January and December, according to data from the Brazilian Electric Vehicle Association (ABVE).
Of this total, 61.615 units were fully battery electric vehicles, representing around 35% of the market share, an impressive mark that reveals the growing demand for sustainable and efficient options.
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Brazil, which was a pioneer in the adoption of ethanol as a biofuel, appears to be preparing to take another step towards electrifying its vehicle fleet.
China's role and experts' views
Liu Xiaoshi, deputy secretary-general of the China EV 100 think tank platform, which promotes the development of electric vehicles in China, confidently stated that “the electric car will be dominant in Brazil, yes".
For him, the next phase of the evolution of the Brazilian automotive sector will be electrification, succeeding the era of biofuels, with ethanol at the forefront.
He emphasized the inevitability of an increase in sales of electric cars, pointing out that Brazil is already following a trajectory similar to that of the most advanced countries in this field..
The offensive of Chinese manufacturers
The entry of Chinese manufacturers into Brazil has been one of the drivers of this transformation.
Second Rodrigo Zeidan, professor at New York University Shanghai and Fundação Dom Cabral, Chinese companies are dominating the global market and already have a strong presence in Europe.
"They are extremely competitive and are embarking on a price war.”, He stated.
However, the National Association of Automotive Vehicle Manufacturers (Anfavea), which represents the national automotive industry, does not look favorably on the entry of Chinese companies into Brazil, since they are charging lower prices.
In response, Anfavea filed a request for a dumping investigation, claiming that Chinese automakers such as BYD are selling vehicles at prices that make it difficult for local companies to compete.
BYD's leadership and investments in Brazil
A BYD, one of the largest Chinese electric car manufacturers, surpassed Tesla in electric vehicle sales in Brazil in 2024.
In the first quarter of 2025, the company had already achieved more than 21 thousand vehicles, according to ABVE.
The company is also responsible for building the largest vehicle factory outside Asia., located in Camaçari, Bahia, with an investment of R$5,5 billion.
Another important name in this movement is GWM, a Chinese automaker that is about to start manufacturing cars in Brazil.
GWM chose the premises of the former Mercedes-Benz factory in Iracemapolis (SP), and is committed to investing R$10 billion by 2032 in the country.
This movement demonstrates the growing commitment of Chinese companies to local production., consolidating Brazil as a manufacturing hub electric vehicles and hybrids.
Obstacles to local production and the challenge of batteries
However, local production still faces significant challenges.
Marli Olmos, a journalist specializing in the automotive industry, explained that one of the biggest obstacles is the lack of infrastructure for battery manufacturing in Brazil.
Currently, local automakers rely on assembling vehicles with imported components, especially from China..
According to Olmos, It is necessary to develop large-scale production to reduce costs and make electric cars more accessible to Brazilian consumers.
Without this, Brazil will not be able to achieve the sales volume necessary to achieve a leading position in the global market., despite being the sixth largest vehicle market and the eighth largest car producer in the world.
International connection and sustainability
Fang Li, China's executive director World Resources Institute (WRI), highlighted in the panel that electric cars not only represent a solution for the automotive market, but can also be part of an economic integration strategy between countries.
She cited examples such as the use of electric buses in cities like Bogotá and Santiago, where more than 20 electric buses are in operation, contributing to the reduction of carbon emissions and boosting local energy infrastructure.
Tariff barriers and the future of mobility
In Brazil, the future of the automotive industry is closely linked to the issue of prices.
Despite the economic viability of electric cars, as pointed out Rodrigo Zeidan, the country is still stuck in a development model that prioritizes import substitution, which could impede the accelerated growth of the sector.
“Brazil should review its economic model,” suggested Zeidan, seeking to attract investment for technology transfer and not creating tariff barriers.
He warned that the country could miss a great opportunity for technological advances, allowing the future to happen without taking advantage of it properly.
The resistance of traditional industry
Finally, the Brazilian automotive industry, which is already feeling the impact of competitiveness from Chinese automakers, continues to call for an increase in the import tariff to 35%, a measure that critics say would help protect domestic industry.
However, as noted Marli Olmos, great challenge for Brazil will be to convince consumers to adopt electric cars, which will only be possible if prices fall and local production becomes more efficient.
Opportunity or threat?
The current panorama of the electric car market in Brazil and worldwide indicates that, With the support of Chinese technologies, the transition to fleet electrification is closer than ever, although there are still many challenges.
Now, the question remains: is Brazil prepared to not only adopt, but also produce the electric vehicles of the future?
