Brazil’s Auto Shock: Chinese EVs Seize 80% of the Market as BYD Leads Global Expansion

Chinese electric vehicle (EV) makers have quickly dominated Brazil’s car market. Chinese brands now control over 80% of all EV sales there. This marks a huge, decisive shift in South America’s largest car market.

This rapid success is due to strategic, affordable pricing. For instance, models like the BYD Dolphin Mini are significantly cheaper than competitors. Chinese companies shifted their focus after facing high tariffs in the US market. They are now aggressively targeting emerging economies like Brazil. Consequently, Brazil imported nearly 138,000 Chinese electric and hybrid cars in 2024 alone.

Local automakers are worried about this sudden influx of imports. In response, Brazil is reintroducing import tariffs on EVs. The tariff will gradually increase to 35% by 2026. This key policy aims to protect local factories and jobs. Therefore, giants like BYD and Great Wall Motor are already planning to start manufacturing cars directly in Brazil.