Chinese automakers expand manufacturing presence in Brazil

Chinese automotive manufacturers are expanding their industrial footprint in Brazil by utilizing existing facilities and constructing new plants to accelerate local production. Companies such as GWM, BYD, and Caoa Chery have taken over factories previously owned by traditional automakers to reduce import costs and bypass the long lead times required for new construction.

GWM is currently producing models like the Haval H6 and Poer P30 at the former Mercedes-Benz plant in Iracemápolis. Additionally, the company has announced plans for a second factory in Aracruz, expected to begin operations in 2029. This new facility, with an annual capacity of up to 200,000 vehicles, will produce the Ora 5 and a new family of hybrid and electric vehicles using the One platform.

This shift toward local manufacturing is supported by Brazil's Mover program, which provides tax credits for research and development, and a gradual increase in import taxes on electrified vehicles. These policies are designed to incentivize domestic production over reliance on imported units.