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The Advancement of Chinese Automakers in Brazil Is Not Just a Trend, But a Reality. New Factories Have Been Inaugurated in Different States, While Others Are in the Adaptation or Planning Phase. With Heavy Investments, Brands Like BYD, GWM, Chery, Geely, and GAC Are Beginning to Change the Brazilian Automotive Landscape, Bringing Local Production of SUVs, Pickups, and Electrics.
Last week, GWM inaugurated its own car factory in Iracemápolis (SP). The Chinese brand, which has already been consolidating its position in the country with the sale of hybrid and electric models, now takes a definitive step to establish itself in the local market, following the internationalization strategy that began to gain momentum in the last decade.
The investment from GWM in Brazil is estimated at R$ 10 billion over ten years, showing that the company does not treat its operation as something temporary.
This structure is only the third factory the company has outside of China.
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Less than a Tera TSI, up to 710 km of range and charging in 9 minutes: the new BYD Song Ultra expands the Chinese brand’s bet on increasingly faster, more technological, and competitively priced electric SUVs.
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With a 1.0 engine producing 75 hp and costing less than R$ 70,000, Fiat’s car returns to the podium as the cheapest in the country; a temporary promotion for the 2026 Like version reduces the price of the Fiat Mobi.
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With a mild hybrid system of 48 V, 176 hp and a price of R$ 175,990 in the Sahara version, the new Jeep Renegade changes mostly on the inside, improves slightly in fuel consumption, and remains almost the same car.
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With a 293.5 cm³ engine and a range of up to 400 km with a 14.1-liter tank, the Honda CB 300F Twister 2026 has up to 24.7 hp, an initial price of R$ 25,150, and already exceeds R$ 29,000 in the Fipe Table.
Reuse of Space and Jobs Created
The Iracemápolis complex was installed at the same location that previously housed a plant of Mercedes-Benz, which was deactivated in 2020.
By reusing the structure, GWM was able to accelerate the implementation schedule and reduce construction costs.
The economic impact on the region is already noticeable: currently, the factory employs about 600 workers, with plans to reach a thousand employees by the end of 2025.
GWM’s presence also boosts the supply chain, as the automaker adopts a system called “piece by piece.”
In this model, part of the components is still imported, but many are already produced locally. The goal is to achieve 60% of national content by 2026, which will bring more development to the Brazilian automotive industry.
Chinese Car Factories in Brazil
After decades of dominance by traditional brands from Europe, the United States, and Japan, the space is beginning to be occupied intensively by Chinese automakers.
These companies first arrived by importing models, but they are now advancing to a decisive stage: local production.
In recent years, several manufacturers from China have announced or inaugurated factories in Brazil, consolidating a strategic presence.
Among them are BYD, GWM, GAC, Geely, and Chery, each with specific plans for the country.
BYD: Camaçari
BYD inaugurated its factory in Camaçari (BA) in July, in the same space formerly occupied by Ford.
The investment was seen as a milestone, as the Bahia plant became the largest production hub for the company outside of China.
The expected capacity is 150 thousand vehicles per year, and the first models produced will be Dolphin Mini, King, and Song Pro.
The choice of these vehicles is not by chance: they are among the best-selling cars of the brand worldwide and represent a focus on electrification.
BYD was already one of the fastest-growing automakers in Brazil with the importation of electric and hybrid models.
Now, with local production, it gains scale and reduces costs, further increasing its competitiveness.
GWM: Iracemápolis
In August, it was GWM’s turn to inaugurate its factory in Iracemápolis (SP), where a Mercedes-Benz plant used to operate.
The total investment will be R$ 10 billion over ten years, highlighting Brazil’s strategic importance for the automaker.
The initial capacity is 30 thousand vehicles per year, with plans to reach 50 thousand in three years.
The first models to come off the assembly line are the SUVs Haval H6 and H9, as well as the Poer P30 pickup.
A differential for GWM is the establishment of a research and development center next to the factory.
It will be the company’s first in Latin America, with 60 technicians and engineers dedicated to vehicle adaptation and the study of flex hybrid engines.
GAC: Arrival Expected for 2026
Another Chinese automaker preparing to enter is GAC.
The company announced plans to open its factory in 2026, in Catalão (GO). The space will be structured from HPE Automotores, which already operates there.
While production has not yet started, GAC maintains a parts distribution center in Cajamar (SP), ensuring support for future customers.
The models to be manufactured have not yet been confirmed, but there is an expectation that the brand will bring SUVs and hybrids that are already successful in other markets.
GAC’s arrival reinforces the trend of relocating automotive factories in Brazil, utilizing regions that already have specialized labor.
Geely: Partnership with Renault
Unlike other brands, Geely has not yet announced its own factory. Instead, it opted for a partnership with Renault, utilizing the plant in São José dos Pinhais (PR).
The collaboration also extends to engine production through the joint venture Horse.
The first model expected for assembly in Brazil is the electric SUV EX5, but the list has not yet been confirmed. This strategy allows Geely to reduce initial investments while quickly gaining scale.
The partnership with Renault also facilitates technological adaptation and the leveraging of already established industrial processes.
Chery: Pioneer Among the Chinese
Chery was one of the first Chinese brands to establish itself in Brazil. In 2014, it inaugurated its factory in Jacareí (SP), but the unit was closed in 2022 for modernization.
Expectations are that it will resume operations soon, producing models of the Omoda and Jaecoo brands, which belong to the group.
Currently, Chery’s production in Brazil takes place in Anápolis (GO), in partnership with Caoa.
From there, the Tiggo 5X, 7, and 8 SUVs are produced. The capacity of the Goiás plant is 80 thousand vehicles per year, placing the brand in a prominent position among the Chinese.
Chery was also a pioneer in winning over Brazilian consumers with cost-effective SUVs. Today, it seeks to consolidate this image with new lines and greater sophistication.
With BYD, GWM, GAC, Geely, and Chery investing in Brazil, the automotive market is undergoing a new phase.
The next few years will be crucial to gauge how far this presence will consolidate.
Que venham empresas que agreguem tecnologia também, só montagem tipo CKD não interessa…