BEIJING — Chinese carmakers are surging in Brazil, South America's largest auto market, pushing their combined share past 25% on the strength of value-for-money electric vehicles. BYD, the biggest of them, has taken the top spot in new-vehicle sales, while Geely Automobile saw its sales jump 266-fold.
Chinese Cars Double Their Brazil Market Share in Six Months
According to the local IT-focused outlet 36kr on the 25th, Chinese carmakers' share of Brazil's auto market topped 25% as of June this year. That is more than double the level from late last year, when the share stood below 10% — a jump achieved in just six months. Chinese auto exports to Brazil reached $5.2 billion in the first half of the year, making Brazil the largest export market for Chinese cars.
Brazil is the world's sixth-largest auto market and the largest in Latin America, with annual demand of about 2.5 million vehicles. Car sales have risen quickly of late, buoyed by economic growth and government subsidies for eco-friendly vehicles. Last month, 265,700 vehicles were sold, the highest for the month in 12 years.
The rise of Chinese cars stands out even more in brand rankings. Among the top 20 brands by sales last month, seven were Chinese. BYD held onto first place for a third straight month, overtaking Toyota and Hyundai Motor, and Great Wall Motor (GWM) entered the top 10.
Chinese brands are growing at a formidable pace in the local market on the strength of strong value for money. BYD's sales rose 142.1% from a year earlier, and its market share hit a record high of 8.8%. Geely Automobile, the fastest-growing, saw its sales climb an extraordinary 26,535.7% from a year earlier.
One variable is that Brazil began imposing a 35% tariff on imported eco-friendly vehicles this month. In response, major Chinese automakers are rapidly expanding local production. BYD and Great Wall Motor each took over plants formerly used by Ford and Mercedes-Benz, launching local production last year. Geely Automobile will begin local production in the second half of this year, and Leapmotor and Guangzhou Automobile (GAC) will follow starting next year.
New entrants are also arriving. IM, a premium brand under SAIC Motor, will enter the local market in the second half of this year, and iCAUR, a brand under Chery Automobile, will do so next year. 36kr said, "The competition between Chinese brands and traditional brands has not yet reached its fiercest stage."
Chinese Automakers Speed Overseas Push Amid Weak Home Demand; Exports Surge 88%
Chinese EV makers are accelerating their push into overseas markets amid weak domestic demand. Last month, China's retail sales of passenger cars fell 21%, while auto exports jumped 87.8% from the same month a year earlier. About 41% of vehicles produced in China were exported — nearly double the 21% figure in the same period last year.
Leapmotor, counted alongside Xpeng and Nio as one of China's three major EV startups, recorded first-half exports of 96,294 vehicles, up 372.6% from a year earlier and already surpassing its full-year total for last year. Strong exports also drove a sharp rise in revenue. The previous day, Leapmotor said its first-half revenue reached 38.11 billion yuan, a record high for the period. Net profit came to 210 million yuan, marking a third consecutive half-year of profit.
A key driver of Leapmotor's rapid overseas growth is Leapmotor International, a joint venture set up with Stellantis, the world's fourth-largest automaker. As of the end of June, Leapmotor International had built more than 1,000 sales and after-sales service outlets across over 45 overseas markets, including Europe, South America, North America, Asia-Pacific, the Middle East and Africa. More than 900 of those are in Europe alone. By tapping Stellantis' existing brand dealer network, Leapmotor sharply cut the cost and time of building its own overseas distribution network.
This year, it has also begun local production partnerships in earnest to clear tariff barriers. Leapmotor will start formal production of its flagship overseas model, the B10, at Stellantis' plant in Zaragoza, Spain, in the third quarter. In South America, it worked with Stellantis to select the Goiania plant in Brazil as a local assembly base. The goal is to begin local assembly of the B10 there first, then move into full-scale production in the second half of next year.
Geely Automobile, China's second-largest carmaker, raised its annual export target for this year by 44%, to 920,000 vehicles from 640,000. That is about 120% higher than last year's exports of 420,097 vehicles. The company plans to build a long-term sales base of 1 million vehicles across five major overseas regions: ASEAN, Europe, Eastern Europe, Latin America and Africa, and the Middle East and Asia-Pacific.
Behind the upgraded export target is a steep rise in overseas sales. Geely's first-half exports came to 474,228 vehicles, up 157.6% from a year earlier. July exports rose 202% to 106,663 vehicles, a record high. Cumulative exports from January to July reached 580,891 vehicles, up 164.8%. Of the vehicles exported in July, new-energy vehicles (NEVs) numbered 62,604, up 616% from a year earlier and accounting for 59% of the total.
Other automakers are also faring well in overseas markets. BYD, China's largest EV maker, also took first place in auto exports last month with 173,721 vehicles, more than double the total of second-place Chery Automobile. BYD's overall sales in July came to about 420,000 vehicles, up 22% from the same month a year earlier. Chery Automobile posted a 4.1% global market share, catching up with Ford Motor of the U.S.
