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Latin America shows rising interest in Chinese NEVs

Automakers, policymakers fostering growth in green mobility

By Wang Keju | China Daily | Updated: 2024-11-20 07:33
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Attendees browse vehicles at a BYD dealership event in Sao Paulo, Brazil, in October last year. VICTOR MORIYAMA/BLOOMBERG/GETTY IMAGES

Coupled with the policy support, consumers in Latin America are increasingly prioritizing sustainability and environmental protection, and this shift in mindset is translating into a growing appetite for Chinese NEVs, Bai said.

A successful long-term presence in the Latin American market requires more than just competitive products, according to analysts, who've called for more efforts toward investing in local production, creating employment opportunities and developing robust aftersales service networks.

In March, BYD started building its first large-scale production base in Camacari in Brazil's Bahia state.

The new complex, to be completed by 2025, will specialize in the production of electric bus and truck chassis, electric and hybrid passenger cars, and lithium and iron phosphate processing, and is expected to produce 150,000 vehicles per year.

Chinese automaker Great Wall Motor also plans to open a production facility in Brazil by May next year, opting for a piece-by-piece assembly process at the site instead of using pre-assembled component kits imported from China.

This move, driven by the tax incentives under the Brazilian government's Mover program, will accelerate the process of nationalizing production and, consequently, enable the company to export from Brazil.

The Mover program provides tax incentives for companies to invest in decarbonization and energy efficiency.

Yin Tongyue, chairman of Chinese carmaker Chery, said that Chinese NEV manufacturers have demonstrated remarkable advancements in critical domains such as power train electrification and intelligent driving.

The integration of Chinese NEV technologies can empower local automakers to enhance their product offerings and embrace sustainable manufacturing practices, ultimately driving the overall competitiveness and resilience of the local automotive industry, Yin said.

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