36Kr Global · Focus | Exports are just the first half. The battle of car companies in Brazil has just begun.

At the end of May, after a voyage of about a month, the BYD car carrier "Shenzhen", carrying more than 7,000 new cars, arrived at the Port of Suape in Brazil. The shipping route symbolizes the pace of Chinese new energy vehicles moving towards the world.

Brazil is the sixth-largest automotive market globally. With its promising growth rate in the new energy market and its influence over the Latin American region, it is becoming one of the major export markets for Chinese new energy vehicles.

According to data from the Brazilian Electric Vehicle Association (ABVE), the sales volume of electric vehicles in Brazil reached 177,360 in 2024, a growth of 90%. According to data from the Passenger Car Association, from January to May 2025, the top three destinations for China's new energy vehicle exports were Belgium with 119,678 vehicles, Brazil with 105,513 vehicles, and Mexico with 84,862 vehicles.

Among the automakers going global, BYD has taken the lead in the Brazilian market, holding an advantage in the pure-electric segment, and its plug-in hybrid models have also shown strong growth. In 2024, BYD's Brazilian subsidiary sold a total of 76,713 vehicles throughout the year, a year-on-year increase of over 300%. In May this year, the sales volume of battery electric vehicles (BEVs) in Brazil reached 6,969, of which BYD accounted for 5,596, accounting for over 80% of all BEV sales.

Sales data of multiple BYD models in the Brazilian market in May 2025. Source: CleanTechnica

However, this growth momentum is also facing new challenges.

Brazil once exempted electric vehicles from tariffs. In 2023, to promote local production, the Brazilian Ministry of Industry, Trade and Services announced that it would resume levying import taxes on new energy vehicles such as pure-electric, plug-in hybrid, and hybrid vehicles starting from 2024 and gradually increase the tax rate until it reaches 35% in July 2026.

In July this year, Brazil's import tariffs on new energy vehicles will increase again. The tariff on pure-electric vehicles will rise to 25%, and those on hybrid and plug-in hybrid vehicles will rise to 30% and 28% respectively. This might be the reason why the ship full of new cars set sail at the beginning.

The adjustment of tariffs in the Brazilian market directly affects the export rhythm of automakers.

Since last year, Chinese automakers have accelerated their exports to grab the "tickets" before the tariff increase. In the first half of 2024, Brazil imported more than 62,000 electric vehicles from China, accounting for 91.4% of the total electric vehicle imports.

BYD's periodic export growth to Brazil along with tariff changes. Source: Gasgoo Automotive Research Institute

However, vehicle exports are just one aspect of automakers going global. The real "battle" in the Brazilian automotive market lies in local production.

In addition to adjusting tariffs, the Brazilian government launched the National Green Mobility and Innovation Program in 2024, aiming to encourage global automakers to produce in Brazil and revitalize the local automotive industry. From overseas automakers such as Toyota, General Motors, and Stellantis to Chinese automakers such as BYD, GAC, Great Wall, Chery, and Geely, many have announced investments in Brazil in recent years to accelerate local production and cooperation.

In May this year, GAC announced its "Brazil Initiative", bringing five models to the Brazilian market. It is expected to sell 100,000 vehicles in the Brazilian market in the next five years. Previously, it had announced a plan to invest 6 billion reais (approximately 7.8 billion RMB) in Brazil within five years and set up a factory in the fourth quarter of 2026.

Great Wall Motor's first factory in Brazil is expected to start production this year. Initially, it will produce three models with an annual production capacity of 50,000 vehicles, which will gradually increase to 100,000 vehicles to cover the Latin American market.

BYD announced in 2023 that it would build a large-scale production base complex consisting of three factories in Camacari, Brazil. However, due to previous labor disputes, recent reports suggest that the factory will start production by the end of December next year.

Geely chose a joint-venture model to enter the Brazilian market. On June 20th, it announced that it had signed a joint-venture agreement with Renault to jointly produce and sell new cars under the Renault and Geely brands in Brazil.

Chinese automakers are continuously deepening their presence in the Brazilian market in terms of product lines, distribution channels, and local supply chains. The year 2026 may become a "watershed" for Chinese new energy vehicles going global to Brazil.

In the future, Chinese automakers will not only have to compete with traditional automakers such as Toyota, Renault, and Volkswagen, which have a long history in Brazil, but also need to deal with various factors such as the local government and labor unions. They need to deeply integrate into the local economic ecosystem and industrial system and make continuous breakthroughs in brand, channels, and supply chains.

When the globalization of automakers enters the deep end, the Brazilian market is a real touchstone.

Text | Shi Yi@36Kr Going Global

Editing | Jason@36Kr Going Global

Photos | Unsplash

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