Brazil Becomes Largest Export Market for Chinese New Energy Vehicles

According to industry data, Brazil has overtaken Belgium as the largest export market for Chinese new energy vehicles (NEVs). This shift comes as Chinese carmakers focus on non-European markets amid the European Union’s anti-subsidy probe into Chinese electric vehicles.

Significant Increase in Exports to Brazil:

According to data from the China Passenger Car Association (CPCA), exports of pure electric and plug-in hybrid cars to Brazil surged 13-fold year-on-year to 40,163 units in April, maintaining its position as the largest export market for the second consecutive month.

The steep rise in exports to Brazil, the 10th largest export market in January, precedes an impending increase in tariffs on EVs and hybrid vehicle imports from July. This tariff hike is part of Brazil’s strategy to encourage local auto production.

Chinese Automakers Investing in Brazil:

Several Chinese automakers are ramping up investments in local production in Brazil. BYD is constructing a manufacturing complex that will begin production by year-end or early 2025, and Great Wall Motor has announced that its Brazil plant will commence operations this month.

In April, Brazil also became China’s second-largest car export destination, trailing only Russia. Russia, subject to Western sanctions, is expected to remain China’s largest car export market, according to CPCA Secretary General Cui Dongshu.

Decline in European Imports:

CPCA data show that countries such as Spain, France, the Netherlands, and Norway saw the largest declines in imports of China-made electric passenger vehicles from January to April. 

The EU’s anti-subsidy probe has disrupted Chinese vehicle exports to the bloc, prompting Chinese carmakers to explore South America, Australia, and ASEAN markets.

In the first four months of this year, Chinese auto exports to Russia increased by 23% to 268,779 vehicles. Exports to Mexico and Brazil jumped by 27% and 536%, reaching 148,705 and 106,448 vehicles, respectively.