BEIJING, Oct. 23 (Xinhua) -- From assembly lines in northeastern Brazil to hybrid engines tailored to the country's ethanol-rich fuel market, Chinese automakers are putting more of their manufacturing and innovation on the ground, moving beyond vehicle exports as they deepen their presence in Latin America's largest economy.
The growing local manufacturing presence is expected to gradually reshape Chinese automakers' export strategies in Brazil and open up new opportunities for industrial cooperation, Cui Dongshu, secretary-general of the China Passenger Car Association (CPCA), told Xinhua.
According to CPCA data, China exported 337,104 new energy vehicles (NEV) to Brazil in the first eight months of 2026, up 159.4 percent year on year, making the South American country the largest destination for Chinese NEV exports.
The growth comes amid expanding demand for electrified vehicles in Brazil. Battery electric vehicle registrations rose 172.3 percent year on year to 22,246 units in September, according to the Brazilian Electric Vehicle Association.
Cui attributed the appeal of Chinese NEVs in Brazil partly to their competitive pricing and diverse product offerings, ranging from battery electric models for urban commuting to plug-in hybrids suited to longer journeys. He noted that such vehicles could meet the needs of Brazilian consumers who value affordability, driving range and lower operating costs, particularly as public charging infrastructure remains underdeveloped.
Brazil has also been pursuing policies to strengthen its domestic automotive industry. Its Green Mobility and Innovation Program, known as Mover, encourages investment and technological innovation.
Against this broader backdrop, Chinese automakers are expanding their local manufacturing presence. In June, BYD began testing the welding, assembly and calibration of dashboard crossbeams at its plant in Camacari, in northeastern Brazil's Bahia state, replacing a process in which the parts previously arrived fully assembled, according to the state government. BYD aims to produce or source more than half of its vehicle components locally in Brazil by January 2027.
By September, the plant had more than 8,000 direct employees, making BYD the second-largest industrial employer in Bahia state, according to the company.
Great Wall Motor (GWM) is also expanding its manufacturing operations in Brazil. In August, the company said its plant in Iracemapolis, Sao Paulo state, had produced more than 15,000 vehicles in the first eight months of 2026 and employed over 1,800 workers. The automaker is also working with Brazilian suppliers to increase the use of locally made components.
Beyond local manufacturing, Chinese automakers are also adapting their technologies to Brazil's unique energy landscape, where ethanol is widely used as an automotive fuel.
BYD brought together more than 100 Chinese and Brazilian engineers who spent two years developing a plug-in hybrid system compatible with both gasoline and ethanol. The technology is used in BYD's Song Pro, a plug-in hybrid SUV launched in Brazil in August. The model can run on gasoline or ethanol.
GWM has made similar adaptations for the Brazilian market. In June, the company introduced locally produced hybrid vehicles that can run on gasoline or ethanol. The technology, developed with Brazilian engineers, underwent more than 400,000 km of testing under local driving conditions.
Cui said Brazil's established automotive industry offers considerable scope for cooperation with Chinese automakers. Brazilian suppliers have strengths in areas such as vehicle bodies, chassis and interiors, while Chinese automakers can provide key NEV components. Such complementary strengths could pave the way for closer cooperation in local sourcing, joint research on technologies adapted to Brazilian conditions, and supply chain development, Cui added.
"This is a phased transition: first exporting vehicle kits and equipment, then encouraging auto parts suppliers to make greenfield investments or establish joint ventures, creating a model in which automakers lead the overseas expansion of entire industrial supply chains," Cui said.
In March, BYD announced plans to invest 300 million Brazilian reals (about 59.4 million U.S. dollars) in an automotive research and testing center in Rio de Janeiro, where it plans to develop, test and validate vehicle technologies.
The Bahia state government also held talks with China's Minth Group in June, an automotive components supplier, to explore a possible investment in the state, with discussions focusing on opportunities created by BYD's local production.
Aecio Moreira, acting secretary of economic development of Bahia state, said BYD's investment had opened new opportunities to attract automotive suppliers and strengthen the state's auto manufacturing supply chain. ■
