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Chinese Giants BYD and GWM Are Accused of Dumping in Brazil, Selling Vehicles Below Cost and Threatening the National Industry. Meanwhile, the Automakers Strongly Deny the Claims and Emphasize Their Robust Investments in the Country.
In recent years, the Brazilian automotive market has been undergoing a transformation.
New foreign brands, especially Chinese ones, have started to gain ground on the streets and in garages across the country.
Previously unknown models have begun to compete for the preference of Brazilian consumers, bringing with them promises of innovation and competitive prices.
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Fiat Strada dominates April with almost 13 thousand units registered and shows why a compact pickup continues beating hatches, SUVs, and electric vehicles in the Brazilian market.
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Honda CG 160 dominates April with over 41 thousand units, gets up to 40 km/l, travels more than 500 km on a single tank, and costs starting from R$ 14 thousand, showing why a simple motorcycle continues to beat scooters, electric bikes, and more technological models in Brazil.
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Brazilians’ disposable income after basic expenses has fallen to its lowest level in 15 years. Only 21% of their income remains for the entire month, and those earning a minimum wage are left with a meager R$ 340 to live on, while credit card interest devours what’s left.
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An agreement between the EU and Mercosur could lead Brazilian companies to produce in Paraguay to pay less taxes and export more to Europe.
According to information released by Autoesporte and Estadão, the National Association of Motor Vehicle Manufacturers (Anfavea) is investigating possible dumping practices by the Chinese automakers BYD and GWM in Brazil.
Dumping occurs when companies sell products at prices lower than the production cost, constituting unfair competition.
Anfavea plans to formally request an investigation from the Ministry of Development, Industry and Trade (Mdic) in the coming days.
Increase in Chinese Imports
In recent years, Chinese automakers have been expanding their presence in the Brazilian market, particularly in the electrified vehicle segment.
In 2024, Chinese brands represented 60% of electrified vehicle sales in the country, with a highlight for BYD, which registered 76,800 units, and GWM, with 29,200 vehicles sold.
This growth has raised concerns among traditional manufacturers, who claim losses due to unfair competition.
Position of Accused Automakers
According to Autoesporte, in response to the accusations, BYD categorically denied engaging in dumping practices and reaffirmed its commitment to ethics and transparency in its operations in Brazil.
The company highlighted its investments in the country, including the construction of an industrial complex in Camaçari, Bahia, which will be the largest outside of China.
BYD stated it is committed to developing the Brazilian automotive industry and criticized traditional automakers for trying to “use tricks to hide their lack of competitiveness.”
GWM, also according to the cited website, stated that it views the action calmly, affirming that it strictly follows international rules and Brazilian legislation for foreign trade.
The company is increasing its hiring pace in Brazil, aiming to start production of its first electrified cars at the Iracemápolis factory in São Paulo, expected in the first half of this year.
Price Comparison: Brazil vs. China
An analysis of the prices charged by Chinese automakers in Brazil compared to those in China reveals significant discrepancies.
For example, the BYD Song Plus is sold in China for prices ranging from 112,800 to 142,800 yuan (approximately R$ 91,402 to R$ 115,711), while in Brazil, prices range from R$ 244,800 to R$ 299,800.
The GWM Haval H6 costs in China between 117,900 and 121,900 yuan (around R$ 95,534 to R$ 98,776), being sold in Brazil for prices starting at R$ 219,000.
For specialists, these differences raise questions about the allegations of dumping, considering the additional import and taxation costs in the Brazilian market.
Reactions from the National Industry
Anfavea has adopted measures to protect the national industry in light of the increasing imports of Chinese vehicles.
One of the actions was advocating for the resumption of the import tax on electrified vehicles, which had been zero since 2015.
However, in January of last year, the tax was reinstated, with increases planned for July 2025 and 2026, until reaching a level of 35%.
The entity also proposes that the current tax of 18% and 16% for vehicles assembled in CKD and SKD regimes be adjusted to 35%, aiming to balance competition.
Next Steps and Expectations
Anfavea is finalizing studies to formalize the request for investigation to the government.
Meanwhile, Chinese automakers continue with their expansion plans in Brazil, with expectations to start local production this year.
The unfolding of this situation could have significant impacts on the Brazilian automotive market, influencing everything from competitiveness to final prices for consumers.
Do you believe that the entry of Chinese automakers will bring benefits or challenges to the Brazilian consumer? Share your opinion in the comments!
As marcas instaladas no Brasil vendem carros depenados por quase 100.000, agora estão apavorados por causa dos carros chineses. Calma que isso é só o começo.
Tudo que vem da China o objetivo é destruir o mundo ,a China **** pra empurrar esse monte de lixo no mercado com o objetivo de destruir as outras montadoras e o planeta!
O engraçado é que temos as carroças mais caras do mundo , aí reclamam da concorrência. Canalhas . E outra , nossos carros não são nacionais seus canalhas . Tem que lotar os pátios das montadoras nacionais . Mas brasileiro é **** !! Compra um kwid por 70 mil kkkkk
Eu acho é pouco !!!