Brazil has overtaken Belgium to become the largest export destination for Chinese new energy vehicles, according to industry data. This development comes as Chinese automakers increase sales to non-European markets amid the European Union’s ongoing anti-subsidy investigation into Chinese electric vehicles.
In April, exports of pure electric and plug-in hybrid cars to Brazil surged thirteenfold year-on-year to 40,163 units, making it the biggest export market for Chinese new energy vehicles for the second consecutive month, according to data from the China Passenger Car Association (CPCA).
The steep rise in exports to Brazil, which was the 10th largest export market in January, precedes a further increase in tariffs on EV and hybrid vehicle imports from July, as the South American country seeks to encourage local automotive production.
Several Chinese automakers have already started increasing investments for local production in Brazil. BYD has commenced building a manufacturing complex there to begin local production by the end of this year or early 2025, while Great Wall Motor has stated that its Brazil plant would begin operations this month.
Brazil became China’s second-largest export destination for all cars in April, trailing only Russia, which retained its top spot.
According to CPCA secretary general Cui Dongshu, Russia, which is subject to Western sanctions, is expected to remain China’s largest car export market.
In contrast, Spain, France, the Netherlands, and Norway were among the countries that saw the most significant declines in imports of Chinese-made electric passenger vehicles from January to April, according to CPCA data.
Cui stated that the EU’s anti-subsidy probe has disrupted Chinese vehicle exports to the bloc, prompting the country’s automakers to actively explore markets in South America, Australia, and ASEAN for exports.
In the first four months of this year, Chinese auto exports to Russia increased by 23 per cent to 268,779 vehicles, while exports to Mexico and Brazil jumped by 27 per cent and 536 per cent to 148,705 and 106,448, respectively, during the same period.