China dominates Brazilian vehicle imports and impacts used car prices

China has become the primary source for more than half of all vehicles imported into Brazil between January and August 2026. According to Anfavea, total vehicle imports reached 406,700 units during this period, marking a 29.8% increase compared to the same timeframe in 2025. While domestic production reached its highest monthly volume since October 2019, Anfavea warned that approximately two-thirds of the recent growth stems from CKD and SKD models—partially assembled kits that generate fewer local jobs.

The influx of Chinese manufacturers and aggressive pricing from brands like BYD is significantly impacting the domestic market. This competition has led to a reduction in new vehicle prices and a subsequent drop in the value of used cars. Data from Auto Avaliar indicates that the negotiated value of vehicles up to three years old fell by 9.3% in the first half of the year. Some popular models have seen depreciation rates exceeding 20% in dealer negotiations as traditional manufacturers offer larger discounts and better financing to compete.

While domestic production is rising, exports have faced challenges, falling 22.9% year-to-date, largely due to reduced sales to Argentina. Meanwhile, consumer interest in Chinese models has surged, with searches for these vehicles increasing by 124% on platforms like OLX, driven by demand for electrified technology and integrated features.