Cheap Chinese EVs Flooding Brazil Raise Concerns Among Local Manufacturers

Brazil is China’s gateway to the South American market to absorb its automobile overcapacity, an economist said.

A drone view shows a BYD vessel docking to deliver vehicles at the Port of Itajaí in Santa Catarina, Brazil, on May 28, 2025. Anderson Cohelo/Reuters

As Brazil has become one of the most important target markets for China’s automakers seeking to manage their electric vehicle (EV) overcapacity, local auto industry and labor associations have expressed growing concerns over the impact of the flood of cheap Chinese cars.

China’s largest EV and plug-in hybrid car company BYD has shipped four batches of its products to Brazil so far this year, totaling about 22,000 vehicles.