"Countries around the world started closing their doors to the Chinese, but Brazil didn't. China made use of that."
BYD, the world’s top producer of electric and plug-in hybrid cars, has deployed a growing fleet of cargo ships to accelerate its expansion overseas, with Brazil becoming its top target. BYD is the largest among several Chinese brands targeting Brazil for growth.
China-built vehicle imports are expected to grow nearly 40% in Brazil this year, to about 200,000.
"We support the arrival of new brands in Brazil to produce, promote the components sector, create jobs and bring new technologies. But from the moment that an excess of imports causes lower investment in production in Brazil, that worries us."
"Even if the factory is here — what value is it really adding if the components, development, and technology is all from abroad?"
Industry and labor groups in Brazil say China is taking advantage of Brazil's temporarily low tariff barriers to ramp up its exports rather than investing to build Brazilian factories and create jobs. They are lobbying Brazil's government to accelerate by a year a plan to increase Brazil's tariff on all EV imports to 35% from 10%, rather than gradually phasing in higher levies.
BYD and other Chinese companies also are taking advantage of a policy in Brazil that allows them to import toll-free up to $169 million for plug-in hybrids imported by July 2025 and $226 million for battery-electric cars. That incentivizes front loading of vehicle shipments to fully benefit from the toll-free quotas before they expire.
reuters.com/business/finan
BYD, the world’s top producer of electric and plug-in hybrid cars, has deployed a growing fleet of cargo ships to accelerate its expansion overseas, with Brazil becoming its top target. BYD is the largest among several Chinese brands targeting Brazil for growth.
China-built vehicle imports are expected to grow nearly 40% in Brazil this year, to about 200,000.
"We support the arrival of new brands in Brazil to produce, promote the components sector, create jobs and bring new technologies. But from the moment that an excess of imports causes lower investment in production in Brazil, that worries us."
"Even if the factory is here — what value is it really adding if the components, development, and technology is all from abroad?"
Industry and labor groups in Brazil say China is taking advantage of Brazil's temporarily low tariff barriers to ramp up its exports rather than investing to build Brazilian factories and create jobs. They are lobbying Brazil's government to accelerate by a year a plan to increase Brazil's tariff on all EV imports to 35% from 10%, rather than gradually phasing in higher levies.
BYD and other Chinese companies also are taking advantage of a policy in Brazil that allows them to import toll-free up to $169 million for plug-in hybrids imported by July 2025 and $226 million for battery-electric cars. That incentivizes front loading of vehicle shipments to fully benefit from the toll-free quotas before they expire.
reuters.com/business/finan