Chinese EV success in Latin America depends on local production

By Daniel Bland - January 29, 2024

Twitter @DanielBlandBiz

Fleet Mobility Today (vers?o em português)

Chinese automakers are making their way into the automobile scene in South America, but more local production is needed to really make a difference in the region.

Manufacturers [BYD, GWM, Chery, Jac, and others] are becoming more popular and I think it is only a matter of time before Chinese built electric vehicles [hybrid and BEV] dominate Latin America, according to Max Leandro Veras who is Fleet Specialists for Laboratórios Servier do Brasil.

The growing number of models becoming available coupled with the more affordable price point is certainly an incentive for those looking to acquire EVs, according to Mr. Veras.

However, as more government incentive is needed, production is still far below expectations. In Brazil, for example, less than 2.5% of its production was destined for electric vehicles in 2023,” Mr. Veras told Fleet Mobility Today.

The scenario will gradually change though considering the start of production by both BYD and GWM in Brazil in 2024.

While BYD is planning to build three industrial plants located at a former Ford facility in the metropolitan region of Bahia state capital Salvador, GWM is planning vehicle production at a factory previously owned by Mercedes Benz in the city of Iracemápolis (Sao Paulo state).

By the second semester of 2024, both automakers are seen starting the production of at least 100,000 vehicles per year. Car models to keep an eye on are the Dolphin, Seagul (Dolphin Mini), Yuan Plus BEVs from BYD and the Haval H6 (PHEV and HEV) as well as the Ora 03 BEV from GWM.

For more on China is bringing electric vehicle models to the Americas, see here.