Imports of Chinese cars soar in Brazil before tax increases

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247 – Imports of Chinese vehicles to the Brazilian market experienced a notable increase during the first quarter of 2024, reaching the mark of US$1.17 billion in shipments. This significant growth was motivated by the anticipation of Chinese automakers in relation to the gradual increase in import tariffs on electric and hybrid vehicles, which are scheduled to reach 35% by 2026. Data released by the General Administration of Customs of China revealed that in January and February, shipments totaled US$589.9 million, with an additional US$580 million in March, adding to the aforementioned total, according to report of Value.

During this period, around 40.9% of imported vehicles were fully electric, while at least 36.8% were plug-in hybrids, allowing charging from both the domestic electricity grid and fast charging stations. Although it is predicted that the pace of sales may adjust as import tariffs increase, experts do not foresee an abrupt decline in this upward movement.

CONTINUES AFTER AD

For analysts, this constant increase in imports of Chinese vehicles to Brazil is part of China’s long-term strategy. They recognize that Chinese vehicles occupy a growing share in an expanding niche market, which coincides with the arrival of Chinese automakers in Brazil, such as GWM and BYD, further consolidating their presence on Brazilian streets.

In the current scenario, the Chinese brands BYD, CAOA Chery and GWM have already conquered a 7% share of the Brazilian automobile market between January and April. This continuous growth suggests a trend towards an increase in the market share of Chinese automakers in Brazil in the coming periods. The information is based on data released by the General Administration of Customs of China.