Brazil "Target" of Chinese Car Manufacturers Doesn't Just Mean We Are a Good Market — China Itself Created This Situation

Brazil “Target” of Chinese Car Manufacturers Doesn’t Just Mean We Are a Good Market — China Itself Created This Situation

Written by Romário Pereira de Carvalho

Published on 06/08/2025 at 13:37

Updated on 06/08/2025 at 13:38

Fábrica da BYD na China. Imagem: Divulgação

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Lower Tariffs And Receptive Market Attract Chinese Brands Seeking An Alternative To Overproduction And Global Restrictions In Brazil

In recent months, Brazil has welcomed five new Chinese automotive brands: GAC, Geely, Zeekr, and Omoda & Jaecoo. In addition, Lynk & Co, Jetour, Avatr, Leapmotor, and MG Motors have already announced plans to start operations in the country soon.

This intense pace may give the impression that the Brazilian market is at the center of global attention.

However, the most important thing is to understand that the motivation lies not in Brazil, but in China itself and the difficulties its manufacturers face in the global landscape.

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Overproduction In China

In 2024, China produced 31.3 million vehicles but sold only 22.6 million domestically, according to the CPCA. This resulted in a surplus of nearly 9 million units that needed to be exported.

The problem is that major markets are becoming increasingly restrictive. The United States imposes a 100% tariff on Chinese electric vehicles.

Meanwhile, the European Union, in addition to the standard 10% tax, charges specific surcharges: SAIC, 35.3%; Geely, 18.8%; BYD, 17%; cooperating companies, 20.7%; and others, up to 35.3%. In some cases, the total exceeds 45%.

With such high barriers, Brazil emerges as a strategic alternative. Here, tariffs range from 25% to 30% for electrified cars.

Even with the gradual return of the import tax, which will reach 35% in 2026, we remain more competitive than the U.S. and Europe.

Favorable Environment In Brazil

The advantages go beyond tariffs. The country offers a less politicized regulatory environment, growing demand for electrified vehicles—particularly hybrids—and logistics facilitated by access to Mercosur.

Lawyer Andrea Weiss, an expert in customs law, highlights that even with rising tariffs, Brazil remains strategic. “We have a more receptive environment for Chinese investments,” she states.

Data from Anfavea confirms the progress: in the first half of 2025, 134,582 vehicles were imported from China, accounting for 62.1% of Brazil’s automotive imports.

Challenge For Traditional Manufacturers

As Chinese brands expand their presence, the manufacturers already established in the country face strong competitive pressure.

Automotive consultant Cássio Pagliarini notes that Chinese companies operate with “much more aggressive” margins and do not follow the traditional logic of profitability.

“They are here to dominate the market, and this directly affects those who already produce locally,” he states.

The concern is that, without protection measures or incentives for the national industry, the factories installed in Brazil may lose ground not only in sales but also in global investment decisions.

Risk Of External Dependence

Andrea Weiss warns that relying excessively on a single country or supplier can leave the market vulnerable to geopolitical and economic crises. For her, Brazil needs to diversify its partnerships and strengthen internal production.

The advancement of Chinese automakers in Brazil, therefore, is not a result of a sudden enthusiasm for the local market, but rather an international situation marked by overproduction and closed doors in other regions.

For now, consumers benefit from more options, technology, and competitive prices. But the risk of deindustrialization and external dependence looms on the horizon, and the decision on how the country will react is still open.

With information from UOL.

Brazil “Target” of Chinese Car Manufacturers Doesn’t Just Mean We Are a Good Market — China Itself Created This Situation

Lower Tariffs And Receptive Market Attract Chinese Brands Seeking An Alternative To Overproduction And Global Restrictions In Brazil

Overproduction In China

Favorable Environment In Brazil

Challenge For Traditional Manufacturers

Risk Of External Dependence

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Brazil “Target” of Chinese Car Manufacturers Doesn’t Just Mean We Are a Good Market — China Itself Created This Situation

Lower Tariffs And Receptive Market Attract Chinese Brands Seeking An Alternative To Overproduction And Global Restrictions In Brazil

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