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Chinese Automaker Seeks Expansion With New Investments and Competes for Space in the Domestic Market
Great Wall Motor (GWM) opened its first factory in Brazil on August 15, 2025, in Iracemápolis, São Paulo.
The event was attended by President Luiz Inácio Lula da Silva and CEO Mu Feng.
However, the company is already considering establishing a second production unit in the country, reinforcing its plans to invest R$ 10 billion by 2032.
Meanwhile, states such as Paraná, Santa Catarina, Espírito Santo, and São Paulo itself are competing for the installation, offering tax and structural benefits.
First Factory and Production Goals
The Iracemápolis plant was acquired in 2021 from Daimler AG and began operations with SUVs Haval H6 and H9, as well as the pickup Power P30.
Despite an initial capacity of 50,000 vehicles per year, GWM International CEO Parker Shi highlighted much more ambitious goals.
The company aims to achieve 250,000 to 300,000 annual units, including models produced in Brazil and imported.
To achieve this, it bets on adapting global vehicles to local conditions and producing models priced below R$ 200,000.
This price range encompasses the majority of demand in the domestic market, according to data from Brazilian automotive consultancies.
Upcoming Investments and Timeline
According to Ricardo Bastos, director of GWM Brazil, the decision regarding the new unit will be made starting in 2026.
The plan includes constructing a new factory to launch strategic models, such as a compact SUV and a pickup based on a multi-platform.
By 2027, the company wants to achieve 35% localization, a requirement for exports to Mercosur.
The second phase envisions local battery production and strengthening the supply chain.
Additionally, GWM launched a R&D center in August 2025, focused on flex technology and electric solutions for Brazil.
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Market Competition and Chinese Competition
The movement of GWM occurs amidst the intensification of the Chinese presence in the national automotive sector.
In July 2025, BYD inaugurated the first phase of its industrial complex in Camaçari, Bahia.
The factory will have an initial capacity for 50,000 vehicles and should reach 150,000 annual units in subsequent phases.
BYD has already invested R$ 5 billion in Brazil, with R$ 1.4 billion in the Bahia unit, which employs nearly a thousand people.
According to Professor Antônio Jorge Martins of the Getulio Vargas Foundation, this advancement reflects the needs of Chinese automakers facing strong competition in their domestic market.
The excess production has been allocated to countries like Brazil.
At the same time, the 35% tax on imported electric vehicles will come into effect in 2026, encouraging the establishment of local factories.
Outlook for the Sector
With brands like GAC, Geely, Omoda, and Jaecoo targeting Brazil, competition is expected to heat up the sector in the coming years.
In July 2025, electrified vehicle sales totaled 23,509 units. Consequently, this represented 10.7% of the total vehicles sold that month.
On the other hand, there was a 56.3% increase compared to July 2024, according to consultancy Bright.
Currently, Chinese models offer more technology and safety. Meanwhile, the first vehicles launched in Brazil had lower attractiveness.
Finally, Brazil has become one of the main targets for expansion for Chinese automakers.
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