China's leading electric car manufacturer, BYD, is rapidly exporting low-priced electric cars to Brazil. Just last month, 7,300 new BYDs were shipped to Brazil's Itajai port via a huge cargo ship the size of 20 football fields. It was the fourth largest Chinese cargo ship bound for Brazil in the past year.

According to Reuters, Brazilian auto businessmen have expressed concern that such an oiro of Chinese cars will destroy the local industry and affect jobs. While expanding its business in various countries, BYD is currently operating a significant amount of cargo vessels. International media said that BYD has exported about 22,000 cars so far, making Brazil the main destination. Along with BYD, other Chinese brands have also increased their presence in Brazil. It is estimated that the number of vehicles imported from China in Brazil will increase by 40 percent this year. 

According to Bloomberg, 9 out of 10 vehicles sold in China in the first six months of this year were electric. Although the electrification of public transport is still in its early stages, the process seems to be progressing rapidly in Brazil. There were 55,000 units of passenger EVs sold in the first six months of 2024. As the EV market continues to grow, Brazil is experiencing a decline in Chinese vehicles. As in the European Union and the United States, this South American  There are no policy barriers to Chinese brands and products in the country. 

Chinese EV companies have increased exports, paying particular attention to emerging, low-competition and high-demand markets like Brazil. In the first six months of 2024, 89 percent of EVs sold in Brazil were from Chinese companies, compared to only 24 percent in 2023. BYD started selling its EV and plug-in hybrid vehicles in Brazil in 2015. Compared to 2023 and 2024, the sales of this company's vehicles increased by 327 percent, Brazilian journalist Gabriel Daros wrote in "Rest of World". According to him, this increase is possible due to the zero tax policy implemented by Brazil on EV imports. 

But this situation does not always exist, journalist Daros has explained. Because Brazil has currently implemented an ever-increasing tax policy on EV imports. According to this, EV imports will have to pay 35 percent customs duty in Brazil, increasing from 10 percent in 2024 to 2026. From the current 18 percent tax, it will increase to 25 percent next month. "Lobbying" by Brazil's influential auto manufacturers has worked to implement such a tax law, according to Daros' analysis.  According to

Reuters, Brazilian industrialists and labor organizations have accused Chinese EV manufacturers of taking advantage of temporarily reduced taxes to sell cars instead of investing in Brazilian factories. They complain that this trend has not played a role in job creation. According to Reuters, local industrialists are pressuring the government to raise the import tax to 35 percent at the same time instead of gradually increasing the tax on electric car imports from 18 percent. 

"Brazil kept the door open when various countries were banning the import of Chinese cars, China took advantage of it," said the president of Industrial Brazil and representative of Mercedes-Benz, Aroeldo da Silva. The media mentioned that BYD has not given any response on this matter. In order to encourage electric vehicles along with import facilitation, the Brazilian government is implementing a program to support local industry and production. It is mentioned in 'It's Probably Chinese'.

Last June, Brazilian President Lula da Silva gave legal recognition to the country's new transport decarbonization policy, the Green Mobility and Innovation Program. Through this program, Brazil has implemented a tax exemption system for the production and purchase of low-emission vehicles, including hybrids and EVs. After this policy, Chinese companies such as BYD and Greatwall Motor are planning to open factories in Brazil to produce electric vehicles. However, local industrialists say that they have not taken any initiative so far.

Brazil is the eighth largest car manufacturing country in the world. Now the Chinese company has started producing electric vehicles there, experts have pointed out that this country will become the center of EVs in Latin America. With the leadership of Chinese companies, they estimate that Brazil may emerge as a major center or export hub for Latin America in the near future for electric vehicle exports. 

China is currently producing a significant amount of cars. Due to this, there is a sharp increase in exports. In 2023, China overtook Japan to become the world's largest exporter of vehicles. Chinese vehicles are expanding into Europe, Southeast Asia and Latin American markets. Brazil is important for Chinese brands as the eighth largest car market in the world. Companies like Volkswagen, General Motors, Jeep are producing cars there.