China and Leadership in Electric Cars: Country Dominates Battery Production and Is Set to Be a Leader in Exports Soon

The Future of Electric Cars in Brazil Comes from China – The Country Ranks First in Production of These Vehicles and Is Expected to Be a Leader in Exports Soon

Currently, the cheapest electric car in Brazil costs R$ 160 thousand, the JAC e-sJ1, which had arrived costing R$ 150 thousand and has already had a price adjustment. For 2022, the presence of electric cars in the country’s market is expected to increase by 0.5% compared to 2021, which is projected to close the year at 1%. However, most electric cars in Brazil in 2022 are expected to come from China, a nation that leads in battery production and electric vehicles themselves.

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As a leader in battery production, which is the most expensive component, China has more options to reduce production costs for electric cars. Due to the economic contraction caused by the Covid-19 pandemic, the Chinese began seeking new markets to export the electric cars they produce – and will invest in Brazil.

“Brazil is one of the markets where they want to have greater penetration with electrified vehicles, but they are already leading in other Latin American markets such as Peru, Chile, and Mexico,” said Paulo Roberto Garbossa from ADK Automotive.

Garbossa also spoke about the strategy adopted by some manufacturers, such as BYD and JAC, which should also be used by brands that have not yet entered the country. “Entering the market with electric commercial vehicles is easier because those who buy can amortize the cost in a shorter timeframe. With passenger cars, often the cost per kilometer driven will never pay off”, he adds.

New Launches of Electric Cars in Brazil

BYD has the eT3, an electric car used by several companies in large centers. However, in 2022, the manufacturer will begin supplying passenger cars and will launch two 100% electric models. Meanwhile, JAC has opted for a complete line and has seen relative success with commercial vehicles, such as the iEV750V van and the urban truck iEV200T.

Additionally, another example is the Volkswagen e-Delivery, a 100% electric urban truck, whose development and production take place in the country and is being adopted by various companies.

Caoa Chery, a Chinese brand, confirmed it intends to offer more electric cars in Brazil – today, the company only offers the Arrizo 5e – and Great Wall. According to Garbossa, “There is no longer the notion that Chinese cars are bad. In Brazil, the perception has changed with the cars from Caoa Chery, for example,” and this outlook is expected to strengthen further with the arrival of new models.

Currently, the lowest-priced electric cars from established brands in Brazil are the small Peugeot e-208 GT, Fiat 500e, and Mini Cooper SE, which cost around R$ 250 thousand.