The Advancement of Chinese Car Manufacturers in Brazil
In the last three years, the Brazilian automotive market has undergone a transformation that few analysts foresaw with such speed. BYD, GWM (Great Wall Motor), and Chery — three Chinese giants — have gone from being curiosities at car shows to becoming protagonists in dealerships, factories, and debates about the country's industrial policy.
Brazil has consolidated as the main destination for Chinese car manufacturers in Latin America. In 2024, electrified vehicles (pure electric and plug-in hybrids) accounted for approximately 6% of total registrations in the country, according to Fenabrave data — a 91% jump compared to 2023. And Chinese brands accounted for more than half of these sales.
But what is behind this movement? It's not just exportation. BYD, GWM, and Chery are building factories, generating jobs, and redesigning the Brazilian automotive chain. This article details each investment, the available models, the practiced prices, and what to expect for the coming years.
BYD in Camaçari: R$ 3 billion in the former Ford factory
The most emblematic story of this new industrial wave begins in Bahia. In July 2024, BYD began the adaptation works of the Camaçari industrial complex, in the Metropolitan Region of Salvador — the same plant that Ford abandoned in 2021, leaving behind about 4,000 direct jobs.
The investment announced by BYD is R$ 3 billion, divided into three phases. The plan foresees an installed capacity of up to 150,000 vehicles per year when the factory is in full operation, scheduled for the second half of 2025, with full scaling up to 2026. The Camaçari complex will have three units: one for the assembly of electric and hybrid vehicles, another for the processing of lithium and iron phosphate (inputs for Blade batteries, BYD's proprietary technology), and a third for the production of chassis and bodywork.
The first phase was inaugurated in December 2024, with the CKD (Completely Knocked Down) assembly line — that is, vehicles that arrive partially assembled from China and are finished in Brazil. The first models to come out of this line were the BYD Dolphin Mini and the BYD Song Plus, two of the brand's best-selling cars in the country.
The choice of Bahia is not accidental. In addition to the existing infrastructure of the old Ford, the state offers significant tax incentives through the Desenvolve program, which reduces the effective ICMS rate. BYD also negotiated specific conditions with the state government, including exemptions for up to 15 years for high-tech operations.
In terms of employment, the expectation is to generate 5,000 direct jobs by 2026 and more than 10,000 indirect jobs in the supply chain. For Camaçari, which suffered with the closure of Ford, BYD represents a second industrial chance.
GWM in Iracemápolis: R$ 10 billion and the largest Chinese bet in the country
If BYD brought the most symbolic investment, GWM brought the largest in absolute terms. In March 2024, Great Wall Motor confirmed a R$ 10 billion investment plan in Brazil until 2032, focused on the factory in Iracemápolis, in the interior of São Paulo — another complex inherited from a manufacturer that left the country, in this case, Mercedes-Benz.
GWM has already started production in Iracemápolis in May 2024 with the Haval H6, a plug-in hybrid SUV that quickly entered the list of the best-selling electrified vehicles in Brazil. The factory currently produces about 30,000 units per year, with plans to expand to 100,000 units per year by 2028.
The GWM investment is divided into stages. The first phase, of R$ 4 billion, covered the complete overhaul of the plant and the installation of assembly, painting, and stamping lines. The second phase, scheduled for 2026-2028, includes a battery unit and the nationalization of components — which means that GWM intends to manufacture batteries locally, reducing dependence on imports.
The company also opened a research and development (P&D) center in São Paulo, with an investment of R$ 200 million, focused on adapting its vehicles to Brazilian conditions: ethanol, dirt roads, and the profile of local consumer use.
Currently, GWM markets in Brazil the models Haval H6 (from R$ 185,000), Haval H6 GT (from R$ 205,000), and the ORA 03, a compact electric positioned in the R$ 150,000 range. The brand's strategy is clear: to compete in the premium SUV segment with prices below European and Japanese brands.
Chery in Anápolis: the Chinese veteran of the Brazilian market
While BYD and GWM are the newcomers that dominate the headlines, Chery is the veteran. The Chinese manufacturer has been operating in Brazil since 2014, when it opened its factory in Anápolis, Goiás — the first Chinese manufacturer to produce vehicles on Brazilian soil.
The Anápolis factory, with cumulative investment of over R$ 2 billion, has the capacity to produce 50,000 vehicles per year. Chery also operates under the CAOA Chery brand, the result of a joint venture with the CAOA Group, which brought the dealership network and knowledge of the local market.
The best-selling Chery models in Brazil are the Tiggo 5x (from R$ 120,000), the Tiggo 7 (from R$ 145,000), and the Tiggo 8 (from R$ 175,000). In 2024, the brand launched the Tiggo 5x Pro with a mild hybrid engine and the iCar, a compact urban electric positioned in the R$ 115,000 range.
Chery's advantage over BYD and GWM lies in maturity: the brand already has more than 200 dealerships spread across Brazil, a consolidated after-sales network, and replacement parts available nationally. For consumers concerned with technical assistance — a real barrier for new brands — Chery offers more peace of mind.
In 2024, Chery announced an expansion of the Anápolis factory with a focus on electrification. The additional investment of R$ 1.5 billion is expected to transform the plant into a hub for hybrid and electric vehicles by 2027.
Market Share: the Numbers that Explain the Revolution
The data from Fenabrave and Anfavea show an unequivocal trend. In 2022, the three Chinese brands — BYD, GWM, and Chery — accounted for about 2.5% of the total automobile market in Brazil. In 2024, that number jumped to approximately 7%, with projections to reach 10-12% by 2026.
BYD led the growth. In 2024, the brand registered more than 75,000 vehicles in Brazil, becoming the automaker that sold the most electric cars in the country. The BYD Dolphin Mini, priced from R$ 69,800, was the cheapest electric car in the Brazilian market and responsible for popularizing the category.
GWM registered about 35,000 units in 2024, while Chery recorded approximately 55,000 — combining locally produced and imported models. Together, the three brands sold more than 165,000 vehicles, a number that individually exceeds traditional brands such as Renault and Citroën in the same period.
In the specific segment of electrified vehicles (BEV + PHEV), the dominance is even clearer. BYD held about 35% of the pure electric car market in Brazil in 2024. If the three Chinese brands are combined, the share exceeds 55% — more than half of all electrified vehicles sold in the country are Chinese.
Price Comparison: Chinese vs. Traditional Brands
The main selling argument of Chinese automakers in Brazil is the relationship between equipment and price. Here is a direct comparison in equivalent segments:
Compact SUVs (R$ 120,000 - R$ 160,000):
- Chery Tiggo 5x Pro: R$ 120,000 — 1.5 turbo engine, CVT transmission, 12.3" multimedia center, 6 airbags
- Jeep Renegade Longitude: R$ 140,000 — 1.3 turbo engine, 6-speed automatic transmission, 8.4" screen, 4 airbags
- Volkswagen T-Cross Highline: R$ 145,000 — 1.4 turbo engine, 6-speed automatic transmission, 10" screen, 6 airbags
Midsize electrified SUVs (R$ 180,000 - R$ 250,000):
- BYD Song Plus (PHEV): R$ 190,000 — 204 combined horsepower, 51 km electric range, 15.6" rotating screen
- GWM Haval H6 (PHEV): R$ 185,000 — 243 combined horsepower, 55 km electric range, 14.6" screen
- Toyota Corolla Cross Hybrid: R$ 210,000 — 122 horsepower, no plug-in, 9" screen
- Jeep Compass 4xe (PHEV): R$ 280,000 — 240 horsepower, 44 km electric range, 10.1" screen
Compact electrics (R$ 65,000 - R$ 160,000):
- BYD Dolphin Mini: R$ 69,800 — 95 horsepower, 150 km range, fast charging
- GWM ORA 03: R$ 150,000 — 171 horsepower, 400 km range, retro design
- Fiat 500e (imported): R$ 249,000 — 118 horsepower, 320 km range
The difference is striking. The Chinese deliver more technology, more power, and more range for significantly lower prices. This explains why the Brazilian consumer is migrating — not out of patriotism or curiosity, but on account.
Tax Incentives and the New Industrial Policy
The federal government created in 2024 the Mover program (National Program for Green Mobility and Innovation), which replaced the old Rota 2030. Mover offers tax credits of up to R$ 3.5 billion per year for manufacturers that invest in decarbonization, energy efficiency, and local production.
For Chinese automakers, Mover is a double incentive: it rewards those who produce locally (reducing import tariffs) and those who invest in electrification. The counterpoint is the gradual increase in import tariffs for electric vehicles — from 0% (which was in effect until 2023) to 18% in January 2024, with a forecast to reach 35% by July 2026.
This policy of rising tariffs is, in practice, an invitation for Chinese automakers to produce in Brazil instead of just exporting. And both BYD and GWM have accepted the invitation. Chery, which already produced locally, benefits doubly: its imported competitors become more expensive while it maintains stable costs.
The states also compete for investments. Bahia, São Paulo, and Goiás offer state incentive packages that include a reduction in ICMS, land donations, and investments in logistics infrastructure. The competition between states to attract Chinese factories is reminiscent of what happened in the 1990s with European and American manufacturers.
Job Generation and Impact on the Production Chain
One of the most sensitive arguments in the debate about Chinese automakers is employment. Critics point out that the importation of Chinese vehicles eliminates jobs in the national industry. Advocates respond that the establishment of factories creates more jobs than imports eliminate.
The current numbers support the second argument. Combined, the three main projects — BYD in Camaçari, GWM in Iracemápolis, and Chery in Anápolis — Chinese automakers already employ about 8,000 workers directly in Brazil, with a projection of 20,000 by 2028. Indirect jobs, in the supply chain, dealerships, and services, could reach 50,000.
BYD, in particular, made a point of hiring former Ford employees in Camaçari. Of the 2,000 workers hired in the first phase, about 800 were graduates of the Ford plant — a gesture with strong political and social appeal in Bahia state.
There is also an effect on suppliers. GWM, for example, announced partnerships with Brazilian auto parts companies such as Tupy (engine components) and Randon (suspension and chassis). The goal is to achieve 60% national content in the vehicles produced in Iracemápolis by 2028 — a percentage that gives access to reduced rates in the Mover program.
Challenges: After-sales, Confidence, and Charging Infrastructure
Not everything is rosy. Chinese automakers face real obstacles in Brazil. The main one is consumer perception of quality and durability. Purchase intention surveys conducted by Webmotors in 2024 show that 42% of Brazilians still have reservations about buying a Chinese car — although this number has dropped from 67% in 2022.
The after-sales network is another bottleneck. BYD operated with only 120 dealerships in Brazil at the end of 2024, compared to over 500 of Fiat and 450 of Volkswagen. The company announced plans to reach 300 points of sale by the end of 2025, but expansion is expensive and slow.
For pure electric vehicles, the charging infrastructure remains limited. Brazil had approximately 10,000 public charging points in December 2024 (data from ABVE), compared to over 100,000 in the United States and 3 million in China. The concentration of these chargers in the South-Southeast axis makes the electric car unviable for much of the country.
BYD and GWM have responded by investing in their own fast-charging networks. BYD announced 200 fast-charging stations on highways by 2026, while GWM signed a partnership with Raízen to install chargers at Shell stations. These are important initiatives, but still insufficient for a continental country.
What to Expect for 2026 and Beyond
Sector projections point to an acceleration. The consultancy McKinsey estimates that electrified vehicles will represent 15% of total sales in Brazil by 2030, with Chinese automakers accounting for 40-50% of that segment.
In the short term, 2026 will be the key year. BYD should reach full production in Camaçari, GWM will expand Iracemápolis, and the import tariff for electric vehicles will reach 35%. This scenario favors those who are already producing locally — and the three Chinese brands will be in that position.
Other Chinese manufacturers are watching the Brazilian market with interest. NIO, Xpeng, and Geely (owner of Volvo Cars) have already conducted feasibility studies for operations in Brazil, although none have announced concrete investments.
For the Brazilian consumer, the balance is positive. More competition means better prices, more accessible technology, and more options. The BYD Dolphin Mini at R$ 69,800 would be unthinkable without Chinese competitive pressure — and even forced Fiat to anticipate the launch of its popular electric car.
The future of the Brazilian automotive market is being written with Chinese characters. And whoever understands this dynamic early will have an advantage — whether as a consumer, investor, or industry professional.
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Chinese automakers in Brazil are just part of China's global expansion in technology, infrastructure, and industry. At China to Watch, we closely monitor the movements that connect China to Brazil and the world. Subscribe to our newsletter to receive weekly analyses on the topics that will define the next decade — without filters and without jargon.
