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Chinese Automakers Are Taking Over the Brazilian Market

May 15, 2024
in Technology
Chinese Automakers Are Taking Over the Brazilian Market
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As reported by Nikkei, from January to April this year, Chinese automakers experienced an eightfold increase in sales in the Brazilian market, which has begun to undermine the dominance of Western car manufacturers in the Brazilian market.

Data from the Brazilian Fenabrave Dealers Association reveals that in April this year, sales of passenger cars and light commercial vehicles reached 208,000 units, marking a 37% increase compared to the same period last year. Fiat, Volkswagen, and General Motors led the market with a combined 50% share. However, Chinese automakers like BYD, Chery, and Great Wall Motors are steadily gaining ground, having secured 7% of the market share in April. This figure is noteworthy considering that Chinese automakers held less than 3% of the market share in Brazil for the entire year of 2023.

The first four months of this year saw Chinese automakers selling a total of 48,000 new cars in Brazil, a figure eight times higher than the same period last year. This growth is closely linked to the increasing demand for new energy vehicles in Brazil.

The Brazilian Electric Vehicle Association’s data shows that last year, the combined sales of pure electric, plug-in hybrids, and light hybrids soared by 91%, hitting a record high of approximately 94,000 units. Among the sales of these new energy vehicles, BYD, Chery, and Great Wall Motors claimed spots in the top five.

In 2023, China overtook Japan as the world’s largest car exporter. Given the growing competitiveness of Chinese electric vehicles, Latin America has emerged as a key market for Chinese automakers. This year, BYD announced plans to double its investment in its Brazilian factory to 5.5 billion reais ($1.07 billion). The factory, expected to commence operations by the end of this year, will have the capacity to produce up to 300,000 cars annually. Furthermore, BYD aims to increase its number of dealerships in Brazil to 200 by year’s end.

SEE ALSO: PwC Denies Rumors of Suspending Business Operations in China

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