Chinese EVs Dominate Brazil’s Market: Rapid Expansion, Tari

2025-06-12 15:33

An article by Bloomberg New Energy Finance (BNEF) states that nine out of every ten electric vehicles sold in the Brazilian market during the first half of this year were produced by Chinese companies.
This South American giant holds three major attractions for Chinese automakers:

1. Rapid EV Adoption and Sales Growth: Brazil’s electric vehicle market is expanding quickly, with significant sales growth. In the first seven months of 2024 alone, EV sales reached nearly 55,000 units, surpassing the total for the entire year of 2023. Notably, 2023 saw a year-on-year EV sales increase of 178%.

2. Minimal Political Resistance: Brazil shows little political resistance to Chinese-made cars, unlike the trade barriers faced by Chinese companies in the EU or U.S. markets.

3. Focus on Emerging Markets: Chinese manufacturers prioritize emerging markets with weaker competition but steady growth potential, granting them first-mover advantages. In the first half of 2024, Chinese-produced EVs accounted for 89% of Brazil’s imported electric vehicles, up 15 percentage points from 2023.

A key goal of the Brazilian government is to stimulate local EV manufacturing. In January 2024, Brazil introduced import tariffs on EVs, set to increase every six months. By July 2026, tariffs on pure electric and plug-in hybrid vehicles are expected to reach 35%.

In response, BYD and Great Wall Motor have announced plans to begin local EV production in Brazil. As the world’s eighth-largest auto producer, Brazil could become a springboard for Chinese automakers to expand across Latin America. Under China’s leadership, Brazil may emerge as a major EV export hub for the region.