Brazil Leads Chinese Car Imports with 147% Increase
Brazil has become the world's largest importer of vehicles from China, with a year-on-year increase of 147%. This growth is attributed to a strategy by automakers in response to the increase in tariffs on electric cars that began this month. Chinese exports to Brazil reached $5.2 billion between January and May, surpassing the $2.1 billion from the same period in 2022. Brazil outpaced Russia ($5 billion) and Belgium ($3.8 billion), taking the top spot after being sixth a year ago. Of this total, $4.5 billion corresponds to electric vehicles, which increased from 33% in 2021 to 87% in 2023 in the import mix. Imports peaked in April and May, with purchases amounting to $2.7 billion, due to the need for brands to expedite shipments before the 35% tariff on electric vehicles took effect. The Brazilian government also implemented a quota of $463 million free of tariffs for complete knockdown (CKD) kits to encourage local production by Chinese manufacturers. At least eight brands are already producing in Brazil or have plans to do so. The greater availability of electric models has begun to impact prices, with a decline in new car values for the first time since 2020. The BYD Dolphin Mini became the best-selling model in February, with a price close to $21,500.
-- Price
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