GAC Pumps $6B into Brazil’s Heartland, Converting Old Mitsubishi Site into Ethanol-Electric Hub
GAC Motor executives confirmed plans to inject $6 billion into Brazil during a May 12 meeting with President Luiz Inácio Lula da Silva in Beijing, reviving a shuttered Mitsubishi-Suzuki factory in Catalão, Goiás.
The Chinese automaker will allocate $1.3 billion upfront to retool the facility for producing three models: the hybrid Emkoo SUV, the electric Aion V, and the premium Hyper HT.
This marks Brazil’s largest automotive foreign investment since BYD’s 2023 entry, with GAC aiming to capture 8% of the market by 2030. The Catalão plant, idle since late 2023, will employ 1,200 workers initially, scaling to 4,500 by 2026.
GAC’s strategy hinges on Brazil’s ethanol dominance, partnering with Unicamp, UFSC, and UFSM universities to develop flex-hybrid engines compatible with sugarcane fuel.
A separate R&D hub in Northeast Brazil will focus on thermal management for batteries in tropical climates, backed by $23 million in academic grants.
Brazilian Vice President Geraldo Alckmin, who secured GAC’s commitment during a June 2024 Beijing visit, highlighted the deal’s job creation and technology transfer.
China’s GAC Enters Brazil with Ethanol-Hybrid Strategy
The automaker, China’s fifth-largest with 2.52 million vehicles produced in 2023, leverages joint ventures with Toyota and Honda to localize production.
Its São Paulo distribution center, operational since February, stocks parts for five imported models debuting May 23. GAC’s playbook mirrors BYD’s but adds a twist: ethanol-compatible hybrids.
While BYD bet solely on EVs, GAC’s Hyper HT SUV offers a 340-horsepower electric motor paired with a flex-fuel generator, targeting rural areas lacking charging infrastructure.
This dual approach aligns with Brazil’s Mover program, which subsidizes low-emission vehicles. The company committed 300 electric vehicles to November’s COP-30 climate summit in Belém, countering criticism of its combustion-engine ventures.
With a $580 million tech complex near São Paulo and 50 planned dealerships, GAC positions itself as a bridge between legacy automakers and EV startups. Its Catalão exports to Argentina and Colombia begin Q1 2026, testing regional appetite for China’s hybrid pivot.
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