【Text by Observer Net, Liu Bai】"We are engaged in a global competition with China, not just in electric vehicles. If we lose, Ford will have no future." In the context of the strong rise of Chinese automakers, Ford CEO Jim Farley's remarks reflect the increasing anxiety of European and American old-established auto companies.

A New York Times article published on July 21 mentioned the competition between both sides in the Latin American market.

The article noted that Chinese automakers such as Great Wall and BYD are acquiring factories left behind by Western automakers like Ford and Mercedes-Benz after their withdrawal from Brazil, hoping to establish themselves in this sixth-largest car market globally, and eventually expand to the entire Latin American market. Chinese automakers have risen in the global automotive industry transformation by leveraging fast-charging technology, price advantages, and global layout, bringing opportunities to countries like Brazil.

In a sugarcane plantation located two hours' drive from Brazil's largest city São Paulo, a Chinese electric vehicle factory is ready to start production. Not long ago, this factory was owned by the traditional automobile giant Daimler, Germany, but now its new owner is Great Wall Motor.

In a high-end community in São Paulo, a BYD showroom was lively over the weekend. People tested cars, looked at prices, and many had done their homework. A car owner said, "I will never go back to driving oil-powered cars; (electric cars) are environmentally friendly, comfortable, and quiet."

In cities like São Paulo, Chinese cars are becoming increasingly popular. The New York Times photo

"The goal of Chinese enterprises is to reshape the way people travel in Brazil, ultimately changing the transportation pattern across Latin America, which is similar to the successful practices of Chinese automakers in most regions of Asia, and also their hope to achieve in Europe," wrote the New York Times.

"This shift reflects a profound transformation in the global automotive industry. In the past, American and European gasoline cars defined global car trends, but this era is rapidly being replaced by China."

Today, China is not only the country with the highest production and export volume of vehicles globally, but also dominates electric vehicles and their entire industrial chain.

The article pointed out that Chinese electric vehicle technology is leading, some models can match Tesla in range, but at a lower price. BYD has developed a technology that can charge a car in 5 minutes. This also explains why Tesla is performing poorly in China, and why the Biden and Trump administrations have repeatedly banned Chinese cars from entering the U.S. market.

For China, this means deepening other markets around the world.

Chinese automakers have already built factories or are in the process of building them in Hungary, Indonesia, Russia, Thailand, and Turkey. These layouts, including the Great Wall Motor factory in Brazil, are part of China's efforts to compete for market share in the global automotive industry. The automotive industry is an important source of income and employment, and also a symbol of national prestige.

This technological change is an opportunity for China. When the Trump administration tried to suppress the development of electric vehicles in the United States, China saw it as a rare opportunity to break through the market long dominated by German, Japanese, South Korean, and American companies.

Western counterparts such as Toyota, General Motors, and Volkswagen are struggling to master electric vehicle technology, but for China, this industry transformation is beneficial. Chinese cars have flooded into most other markets around the world, becoming a powerful symbol of China's economic and technological rise.

On the other hand, Western automobile giants are deeply worried.

"We are engaged in a global competition with China," Ford CEO Jim Farley said last month at the Aspen meeting. "Not just in electric vehicles. If we lose, Ford will have no future."

Photo: Jim Farley

In 2024, the market share of Chinese brands in the European market doubled to 6%, reaching 20% in the electric vehicle sector. Despite high tariffs, Chinese electric vehicle showrooms have spread from Milan to Mumbai.

Now, China is entering the Latin American market. Great Wall took over the Mercedes-Benz factory near São Paulo, and BYD also bought the Ford factory in Brazil. Ford reluctantly stated that this was a "difficult but necessary decision."

"For decades, we have seen the dominance of Western brands face a real challenge for the first time, not only in terms of market share, but also in shaping the future of mobility," said Natalie Ongestell, president of the Rio de Janeiro-based climate research and advocacy organization "Talanoa Institute."

As the sixth-largest car market in the world, Brazil is trying to actively embrace change. The government encourages local production, gradually increases import tariffs, and prioritizes more environmentally friendly models.

"We don't want to just import foreign technology," said Rafael Dubeks, special advisor to the Brazilian Ministry of Finance, "we also want to seize the opportunity of the profound changes in the global manufacturing structure, so that Brazil can get a share in the future value chain."

The preference of the Brazilian market for Chinese electric vehicles surprised long-standing Asian and Western traditional automakers. According to data from the National Association of Brazilian Automobile Manufacturers, the import volume of Chinese cars increased three times from 2023 to 2024.

Although there are also discordant voices in Brazil, such as accusations of Chinese "dumping" low-price cars, Chinese automakers are continuously adjusting to adapt to local needs.

"We need to produce products that consumers want," said Márcio Renato Alfonso, a Brazilian who worked for American automakers for many years and now serves as the R&D director of Great Wall Motor in Brazil, "they should combine high technology with affordable prices."

In Alfonso's view, the obvious reason for the rapid expansion of Chinese automakers in Brazil is their huge investment in new technologies and designs. "Without cost competitiveness and innovation, it is difficult to participate in the competition, not only for American automakers, but for all companies."

The article believes that for Brazil, they also hope to achieve their aspirations by leveraging Chinese technology.

China is Brazil's largest trading partner. Brazil exports large quantities of soybeans and oil to China, and is also one of the main buyers of Chinese clean energy technology. In May this year, Brazilian President Lula made a state visit to China, praising China's investments in Brazil, including in the automotive sector.

Brazilian senior diplomat André Correa Dourado said that although some countries have criticized Chinese low-price electric vehicles, claiming they disrupt the global trade pattern, Brazil should not have such concerns.

"I think it's a very positive message. It's precisely these cars that make electric vehicles more affordable," he said.

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