Korean Media: BYD Rises to the Top, Geely Surges 266-Fold, Chinese Autos Dominate Brazil — the World’s Sixth-Largest Market
On October 3, South Korea’s Seoul Economic Daily reported that Chinese automobiles are rapidly gaining ground in Brazil, the largest automotive market in Latin America, driven by cost-effective electric vehicles. Their market share has now surpassed 25%. Among them, BYD, the world’s largest automaker, leads in new vehicle sales, while Geely’s sales have surged 266 times.
As of June this year, Chinese cars accounted for over 25% of Brazil’s automotive market—a doubling of their share within just six months, up from 10% at the end of last year. In the first half of 2024, China’s auto exports to Brazil totaled $5.2 billion, making Brazil the largest export destination for Chinese vehicles.
Brazil ranks as the sixth-largest automotive market globally and the largest in Latin America, with annual demand reaching approximately 2.5 million units. Growth in recent years has been fueled by economic expansion and government incentives for environmentally friendly vehicles. In July, Brazil recorded sales of 265,700 vehicles—its highest level for the month in 12 years.
The rise of Chinese brands is particularly pronounced when ranked by model. By July, seven Chinese brands appeared among the top 20 best-selling models. BYD has led sales for three consecutive months, surpassing Toyota and Hyundai, while Great Wall Motors also entered the top ten.
Thanks to their exceptional value proposition, Chinese brands are expanding at a remarkable pace in the local market. BYD’s sales grew 142.1% year-on-year, with a market share of 8.8%, reaching a record high. Geely, the fastest-growing brand, saw its sales increase by an astonishing 26,535.7% year-on-year.
A potential uncertainty looms: Brazil has begun imposing a 35% tariff on imported eco-friendly vehicles. In response, major Chinese automakers are accelerating local production. BYD and Great Wall Motors have acquired former Ford and Mercedes-Benz plants, respectively, and began local manufacturing last year. Additionally, Geely is set to commence local production later this year.
New Chinese brands continue to enter the market. SAIC’s premium sub-brand IM plans to launch in Brazil this second half of the year, while Chery’s iCAUR brand intends to debut next year. Analysts note that “the competition between Chinese and traditional international brands has not yet reached its most intense phase.”
Original article: toutiao.com/article/1877993230342153/
Disclaimer: The views expressed in this article are those of the author alone.