by Chinese Electric Vehicles Flood Brazil
The Chinese manufacturer BYD is actively importing electric vehicles to Brazil – over 22 thousand cars were imported into the country in the first five months of 2025. Currently, manufacturers can import thousands of cars without customs duties, which is causing concern among local experts.
According to Reuters, cheap Chinese electric cars and hybrids could undermine the long-term position of the Brazilian auto industry. Unlike Volkswagen, GM, and Stellantis, which have invested in local production for decades, new players like BYD, GWM, and Volvo import cars from abroad.
Question of Customs Tariffs
Brazil abolished import duties on electric vehicles 10 years ago to stimulate demand. Although a 10-percent duty was reinstated in 2024, it remains significantly lower than in Europe. Until July 2025, Chinese manufacturers can import cars worth up to $169 million (PHEV) and $226 million (EV) without paying duties.
“We support new brands if they invest in production, create jobs, and develop technologies. But excessive imports that reduce investments in local production are a cause for concern,” said the president of ANFAVEA, Igor Calvet.
Delays in Localization
BYD postponed the opening of its plant in Bahia until the end of 2026 following an incident with foreign workers. GWM announced a similar delay. According to forecasts, by the end of 2025, Brazil could import up to 200 thousand Chinese cars – about 8% of the total volume of new car sales.
Some experts are calling for an acceleration of the planned increase in customs tariffs to 35%, scheduled for 2026. However, Chinese brands are clearly trying to make the most of the current preferential conditions before their review.
