Chinese automakers have sparked a strong wave in the Brazilian market. BYD and Great Wall Motors (GWM) have already introduced their first models in the Brazilian passenger car market in less than four years, and collectively, all Chinese brands now hold over 10% of the Brazilian passenger car market share. According to statistics compiled by K.Lume Consulting from January to August this year, Chinese brands have achieved an 11% market share in the new passenger car market.

Chinese brands in Brazil boast a more convenient dealership network compared to brands like Toyota, Renault, Hyundai, and Honda, which have had factories and sales networks in Brazil for decades. Research by Neocom indicates that BYD, Great Wall Motors, Omoda, Jaecoo, and GAC together have 347 sales points, including dealerships and showrooms. While these sales points primarily deal with imported cars, their number is second only to the big three automakers: Stellantis (over 1000), General Motors (565), and Volkswagen (443).

Chinese brands have shown impressive performance in the hybrid and electric vehicle market in Brazil. BYD aims to be among the top five automotive brands in Brazil and currently ranks seventh in the Brazilian passenger car market; Great Wall Motors plans to sell between 250,000 and 300,000 new cars annually in Brazil, with production already underway at their factory in Iracemapolis, São Paulo.

However, Chinese brands face competition from traditional Brazilian carmakers like Stellantis, General Motors, and Volkswagen, who also plan to introduce hybrid vehicles. Additionally, challenges for the sale of pure electric and hybrid models in Brazil include the lack of widespread charging infrastructure and relative difficulty in reselling used cars.

Following tariff barriers from the US and Europe, Chinese brand sales in the Brazilian market have increased sevenfold. Bright Consulting predicts that by 2025, Chinese brand new car sales will surpass 260,000 units, accounting for about 10% of the entire Brazilian market for new passenger cars and light commercial vehicles.

As the Brazilian government gradually raises import tariffs on hybrid and electric vehicles, reinstating them to a maximum of 35% from last year until July 2026, this will mainly affect imported vehicles from China. Chinese brands with factories in Brazil can utilize a total of $463 million in duty-free import quotas to import knockdown vehicles for assembly. Additionally, these companies will benefit from lower import tax rates, but starting from January 2027, fully imported electric and hybrid models in knockdown form will be subject to the full 35% import tariff.