Brazil becomes main export market for Chinese electric cars – PNME
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Brazil overtook Belgium and became the main export destination for electric and plug-in hybrid cars manufactured in China, according to recent sector data. This significant advancement comes at a time when Chinese automakers are diversifying their sales to markets outside Europe in response to the European Union’s subsidy investigation into Chinese electric vehicles.
According to the Chinese Passenger Car Association (CPCA), exports of electric and plug-in hybrid cars to Brazil increased 13 times compared to the previous year, reaching 40,163 units in April. In January, Brazil occupied tenth position in this ranking, but quickly rose to the top.
The response of Chinese automakers to this market change has been quick and strategic. BYD, for example, is in the process of building a manufacturing complex in Brazil, with plans to begin local production by the end of the year or early 2025. Similarly, GWM announced that its plant in Brazil will begin to operate in the second half of 2024. Other Chinese automakers are also eyeing the growing Brazilian market.
In addition to leading exports of electric cars and plug-in hybrids, Brazil also stood out as the second largest export destination for Chinese automobiles of all types, behind only Russia. This growth reflects a growing demand for new energy vehicles in Brazil, driven by the strategic expansion of Chinese automakers.
CPCA data shows a significant decrease in imports of Chinese electric vehicles by European countries such as Spain, France, the Netherlands and Norway between January and April. The European Union’s subsidy investigation has impacted exports to the bloc, leading Chinese automakers to actively seek alternative markets in South America, Australia and Southeast Asia.
In the first four months of this year, Chinese car exports to Russia increased by 23%, totaling 268,779 vehicles. In the same period, exports to Mexico and Brazil increased by 27% and 536%, respectively, reaching 148,705 and 106,448 units.
The growing demand for new energy vehicles in Brazil, combined with the strategic expansion of Chinese automakers, highlights the country as a key market for electric and hybrid cars, especially at a time of strong resistance in Europe and the United States. The new Brazilian policy to encourage local car production should open up significant opportunities for the automotive industry in the coming years.
