China companies targeting Brazil to manufacture electric vehicles — MercoPress
China companies targeting Brazil to manufacture electric vehicles
The steep increase in exports to Brazil comes ahead of a further increase in tariffs on EVs and hybrid vehicle imports from July as Brazil seeks to encourage local auto production.
With the European Union and United States strongly limiting imports of electric vehicles, EV, from China, exports of manufactured pure electric and plug-in hybrid cars to Brazil soared 13-fold year-on-year to 40,163 units in April, making it the biggest export market for a second straight month, according to data from the China Passenger Car Association (CPCA).
The steep increase in exports to Brazil, which was the 10th largest export market in January, comes ahead of a further increase in tariffs on EVs and hybrid vehicle imports from July as Brazil seeks to encourage local auto production.
Several Chinese automakers have already started increasing investments for local production in Brazil. BYD, opens new tab, has started building a manufacturing complex there to begin local production by year-end or in early 2025 and Great Wall Motor, opens new tab has said that its Brazil plant would begin operations this month.
Brazil also became China’s second-largest export destination for all cars in April, trailing Russia which retained its top spot.
Russia, which is subject to Western sanctions, is expected to remain China’s largest car export market, said CPCA secretary general Cui Dongshu.
Spain, France, the Netherlands and Norway were among the countries that saw biggest falls in imports of China-made electric passenger vehicles in January-April, according to CPCA data.
EU’s anti-subsidy probe has disrupted Chinese vehicle exports to the bloc, but the country’s carmakers have been actively exploring South America, Australia and ASEAN markets for exports, Cui said. In the first four months of this year,
Chinese auto exports to Russia increased 23% to 268,779 vehicles. Exports to Mexico and Brazil jumped 27% and 536% to 148,705 and 106,448 respectively during the same period.
