On the streets of Rio de Janeiro, it’s not hard to spot the latest signs of China’s growing global automotive ambitions. There is an influx of electric cars from Chinese brands such as BYD and Great Wall Motors.
“There are a lot of Chinese cars on the road,” said EV owner Sergio Ramalho.
Brazil has become the new frontier for China’s electric vehicle boom. According to Brazilian customs data, the country imported about 138,000 electric and hybrid vehicles from China in 2024, an increase of nearly 100,000 from the previous year.
Cut off from the U.S. market, Chinese automakers are focusing on emerging countries.
“Chinese EV manufacturers are facing significant pressure within China,” said Ilaria Mazzocco, deputy director of the Center for Strategic and International Studies. “They are expanding overseas on a very large scale.”
Brazil is South America’s largest car market, and as in other countries, Chinese companies entering the market are in direct competition with established brands. According to the Brazilian Electric Vehicle Association, by early 2025 Chinese models accounted for more than 80% of all EV sales.
The affordable price is a big attraction. BYD’s Dolphin Mini, one of the country’s best-selling electric cars, costs about 119,900 reais, or $22,000, about $7,000 less. general motorsThe cheapest comparable model in Brazil.
“We’ve seen a very large number of Chinese vehicles arriving here,” said Gustavo Tanure, CEO of charging network startup EZVolt. “The demand for charging is very high.”
When Brazil lowered its 35% import tariff on EVs in 2015, BYD quickly moved to expand its operations there. The company first entered the country in 2015 to produce electric buses and currently operates what it claims is one of the largest EV factories in Latin America in the northeastern state of Bahia. The 4.6 million square meter complex, built on the site of a shuttered Ford factory, is expected to produce up to 300,000 cars a year.
“Brazil is the largest car market in Latin America,” Mazzocco said. “If you want to sell in Brazil, there is a strong incentive to produce in Brazil.”
Other Chinese automakers are following suit. Great Wall Motors acquired a former Mercedes-Benz factory this year and began producing cars near Sao Paulo.
The rapid influx has raised a sense of alarm among labor groups.
“A huge influx of vehicles from China could threaten jobs and production in Brazil,” said Wellington Damaseno, general secretary of the ABC metalworkers’ union.
The Brazilian government then moved to reimpose import duties. Tariffs on foreign EVs will begin to be reinstated in 2024 and are expected to reach 35% by 2026.
BYD has also come under intense scrutiny over reports of poor conditions for some construction workers at its new factory in Bahia. The company said it had “zero tolerance for violations of human rights and labor laws” and had severed ties with the contractors involved.
Despite the controversy, Chinese automakers continue to invest heavily.
“The strategy is exactly like this: Be the first company to start selling EVs in new markets. Create a market,” Mazzocco said. “This is very long-term thinking and is transforming several emerging markets on the ground.”
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