Recently, GAC Group launched and initiated its "Brazil Action" in Brazil, with five new vehicles, including the AION V, AION Y, HYPTEC HT, GS4 HYBRID, and AION ES, being introduced and delivered in the Brazilian market.

Wei Haigang, General Manager of GAC International, stated: "As the first Chinese state-owned automotive brand to enter Brazil, we will promote our expansion through a full industry chain ecosystem going global." GAC's cooperation with Brazil covers various areas such as research and development, manufacturing, service ecosystem, among others.

According to official statements from GAC Group, Brazil is the sixth largest automobile market globally, possessing a well-developed automotive industry and a mature automotive consumption culture, making it a crucial pivot point for GAC's global strategy. Based on this market environment, GAC Group had previously expressed its intention to invest $1.3 billion in Brazil.

Wei Haigang mentioned that GAC's investments in Brazil encompass flexible fuel technology, clean energy, research and development in electrification and intelligence, localized production, green transportation, among other fields.

As per Wei Haigang, GAC has confirmed plans for localized production in Brazil. Reports indicate that GAC's production base is planned to be established in Catalão, Goiás state, Brazil, with the factory aimed to produce three new energy vehicle models. GAC is currently in negotiations with local partners in Brazil and plans to set up the factory in the fourth quarter of 2026.

In terms of research and development, GAC Group will establish a research center in Brazil based on collaborations with the State University of Campinas, Federal University of Santa Catarina, and Federal University of Santa Maria, fully integrating GAC's research and development system into Brazil.

Regarding channel construction, Brazil is the first country where GAC's standardized global brand image "One GAC 2.0" has been implemented. GAC will advance channel construction according to the globally unified "One GAC" brand image. Currently, GAC has established 33 dealerships in Brazil, covering major cities nationwide with a market coverage rate exceeding 95%.

According to the overall plan of the "Brazil Action," 2025 is a crucial year for GAC's full industry chain ecosystem to land in Brazil. In terms of energy supply, GAC will establish an energy supply network covering the entire country of Brazil and aims to build a complete industry chain ecosystem in Brazil by 2030.

GAC Group stated that it views Brazil as a gateway to the Latin American market and will accelerate the construction of an ecosystem covering Latin America starting with the "Brazil Action."

Against the backdrop of various Chinese brands entering Brazil, the Brazilian automotive market, as the sixth largest market globally and the largest market in Latin America, holds significant potential. Data from the Brazilian Association of Automotive Manufacturers (Anfavea) shows that in the first quarter of 2025, Brazil's cumulative new vehicle registrations totaled 552,000 units, marking a 7.2% year-on-year growth.

Furthermore, the demand for electric vehicles in the Brazilian automotive market is gradually increasing. According to the Brazilian Association of Automotive Dealers, electrified vehicles are the fastest-growing segment in the local market. In the first four months of this year, sales of such vehicles increased by 37.4% year-on-year, reaching 70,450 units. In comparison, overall sales of light vehicles increased by only 3.4%, totaling 714,800 units.

Supportive policies from the Brazilian government for electric vehicles are also driving the market's development. In this context, Chinese brands such as BYD, Chery, Great Wall, and JAC Motors have accelerated their business expansion in Brazil in recent years and are advancing localization efforts. However, Chinese automakers face a series of challenges as they expand in the Brazilian market, including issues related to tariff systems, labor rights protection, and protectionism towards local enterprises.

Addressing these challenges, Wei Haigang stated in an interview that GAC is well aware of the competitive nature of the Brazilian market, yet the current "external factors" have not affected GAC's overall layout in Brazil. He remarked, "Our strategy is based on the premise of the Sino-Brazilian bilateral relationship."