Frontline observation on the hot sales of new energy vehicles in China and Brazil

In 2024, China's new energy vehicles entered a peak sales season in Latin America, with sales in Brazil alone increasing eight times in the first four months.

According to data from Brazilian government departments and industry associations, China's passenger car exports to Brazil increased by 372.4% in the first four months of 2024, reaching a total of 762 million US dollars, a new historical high for the same period. Chinese electric vehicles have performed even better in the Brazilian market - in the first four months of 2024, sales of Chinese electric vehicles in Brazil reached 48000 units, eight times higher than the same period last year; Chinese electric vehicles account for 36.2% of Brazil's total imported electric vehicles. At present, electric vehicles have become the fourth major product exported by China to Brazil. According to a report from the Brazilian Electric Vehicle Association, BYD, Chery, and Great Wall have become the best-selling electric vehicle brands in Brazil in 2023.

The competition in the Brazilian new energy vehicle market is fierce, and manufacturers from various countries are competing for users through technology and cost advantages. The reputation and market share of their respective brands are gradually forming. A major feature of the Brazilian automotive market in 2023 is the significant increase in the share of Chinese brand electric vehicles.

"Good products" and "good prices" are on par, which is an important secret to the shortage of new energy vehicles in the Brazilian market in China. According to Tulio Callero, an expert at the Brazilian China Entrepreneur Committee, the mystery behind China's rise in new energy vehicles lies in the fact that "China is no longer just a producer, but also a creator", not only "made in China", but also "designed in China". Chinese cars are favored by consumers, especially Chinese new energy vehicles that meet the needs of Brazil's energy transformation. Tatiana Prazerez, Deputy Minister in charge of foreign trade at the Brazilian Ministry of Development, Industry and Trade, pointed out that numerous data are sufficient to demonstrate that China's new energy vehicles are more competitive in multiple aspects.

The rapid progress of China's new energy vehicles is a product of China's integration of its own green development strategy with the world's future development trends. This forward-looking strategic thinking in industrial development and the "real skills" obtained through open competition have been widely recognized by various sectors in Brazil. Cassio Pagliarini, a partner at an automotive manufacturing consulting firm, said that Chinese companies "made a strategic decision to invest in electric vehicles 20 years ago," with investment targets ranging from electric vehicles, hybrid vehicles, plug-in hybrid vehicles, light hybrid vehicles to charging systems and high-tech batteries, covering the entire industry chain. Marcelo Cavalcant, a senior executive in the automotive retail consulting industry, believes that after years of forward-looking investment, "China now has a modern and strong (new energy) automotive industry, with production standards and efficiency surpassing other countries in the world.".

The Brazilian automotive industry believes that the quality and volume of the entire Chinese new energy industry chain are enviable, and there are huge investment and cooperation opportunities. Great Wall Motors and BYD successively purchased Mercedes Benz and Ford factories located in S ã o Paulo and Bahia, respectively. According to the mainstream Brazilian financial media "Economic Value", BYD announced an investment of approximately 3 billion Brazilian reals (approximately 560 million US dollars) to transform the former Ford factory into a factory that will produce up to 300000 hybrid and electric vehicles annually starting from 2025; The annual production of the newly purchased factory by Great Wall Motors is expected to reach 100000 vehicles.

The trade of new energy vehicles allows Brazilian people to enjoy advanced electric vehicles at lower prices and higher quality, and promotes Brazil's green transformation. Investment in the new energy sector drives Brazil's industrial development and technological progress, bringing in a large number of jobs. Brazilian Vice President Alkmin recently attended the China Brazil Business Seminar in Beijing, stating that "China is Brazil's largest trading partner and an important investor." There is enormous potential for strategic cooperation between the two countries in areas such as hybrid vehicles, electric vehicles, renewable energy, aviation industry, and infrastructure.

According to the International Energy Agency, the global demand for new energy vehicles will reach 45 million by 2030, which is 4.5 times higher than in 2022. Especially against the backdrop of over 130 countries and regions proposing carbon neutrality goals, the global demand for green production capacity far exceeds output. It can be seen that green production capacity on a global scale is not an excess, but still has shortcomings.

Regarding the so-called "overcapacity theory" hyped up by politicians and media in Western countries such as the United States, an article published on the Brazilian Truth website points out that this is just another kind of flashy narrative concocted by the West against China. In fact, China's continuous expansion and progress in the field of new energy are rare opportunities for development and cooperation for the global South.