Brazil's Record Chinese Car Imports Prompt Push for Local Manufacturing
Brazil has imported $5.2 billion worth of Chinese vehicles in the first five months of 2026, surpassing Russia as China's largest overseas car market. This surge in imports, particularly of battery-electric and hybrid vehicles, comes as Brazil increases duties on imported EVs and hybrids to 35%. The Brazilian government is leveraging its purchasing power to encourage Chinese automakers like BYD, Chery, and Great Wall to establish local manufacturing operations. The new tariffs are part of Brazil's strategy to ensure that foreign automakers contribute to the local economy by building vehicles domestically, utilizing Brazilian labor and supply chains. 
