China Floods Brazil with Cheap Electric Cars, Industry Sounds Alarm

China has quickly become the main supplier of electric cars to Brazil. In 2024, Chinese brands like BYD sold almost 90% of all electric cars in the country.

They took advantage of Brazil’s low import taxes on electric vehicles, which made it easier and cheaper to bring their cars in. BYD, China’s biggest electric carmaker, shipped more than 30,000 vehicles to Brazil in the first five months of 2025.

They wanted to sell as many cars as possible before Brazil raises import taxes from 10% to 35% by mid-2026. This allowed them to offer electric cars at lower prices than many local or Western brands.

For example, BYD’s cheapest model costs about $19,100, which is less than many gasoline cars in Brazil. Brazilian carmakers and workers’ unions are worried.

They say Chinese companies get support from their government and might be selling cars for less than it costs to make them. This could hurt Brazil’s own car factories and put jobs at risk.

In response, local companies asked the government to bring back higher import taxes and filed complaints about unfair competition. The government agreed to raise taxes on imported electric cars.

Officials hope this will protect local jobs and encourage companies to build cars in Brazil. Brazil has the raw materials, like lithium, needed for electric car batteries, but it still needs more factories and better infrastructure.

Brazil’s Electric Car Dilemma

BYD and another Chinese company, GWM, plan to build factories in Brazil. However, these projects have been delayed. Investigations found poor working conditions at BYD’s factory site in Bahia, and heavy rain slowed construction.

BYD now hopes to start assembling cars from imported parts by late 2025 and to fully produce cars in Brazil by the end of 2026. Meanwhile, more Brazilians are buying electric cars.

In 2024, they bought over 177,000 electric and hybrid vehicles. But Brazil still has only about 3,000 public charging stations, which is not enough for the growing number of electric cars.

The main issue is whether Brazil will become a strong producer of electric cars or just a market for cheap imports. Chinese companies moved fast to take advantage of Brazil’s open market, but local businesses and the government are now pushing back to protect jobs and build up the country’s own industry.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error

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