EqualOcean has learned that in the first quarter of 2024, China's automotive exports experienced significant growth, with a notable increase in supply to the Brazilian market, further consolidating China's position in the global automotive industry.
Currently, China has become the world's largest automotive producer, with its export share to the Brazilian passenger car market rising to 40% in the first three months of 2024, compared to just 10.3% during the same period last year. Meanwhile, Argentina and Mexico saw their shares in the Brazilian automotive market decrease to 16% and 12.1% respectively during the same period.、
In the first quarter of 2024, Brazil imported a total of USD 1.46 billion worth of cars from abroad, of which USD 569.9 million came from China, far exceeding the USD 10.29 million during the same period last year and surpassing the total amount of cars imported from China throughout last year. This growth has driven an increase in the total import volume of passenger cars in Brazil, with a year-on-year increase of 46.4% in the first quarter.
EqualOcean has learned that Argentina and Mexico's automotive exports to Brazil further declined in the first quarter of this year, while China's automotive performance stood out. Official Chinese data indicates that Brazil has become an important export market for China. According to data from the Chinese General Administration of Customs, Brazil was one of the top five destinations for Chinese passenger car exports in the first two months of 2023.
In 2023, Brazil's car sales reached 2.3 million units, making it the largest automotive market in Latin America and the sixth largest in the world, second only to China, the United States, India, Japan, and Germany. Brazil's rapidly growing demand for Chinese cars demonstrates the market's interest in new energy vehicles and the competitive pricing advantage of Chinese manufacturers. Even after Brazil imposed import taxes on imported cars in January this year, demand for Chinese car products is expected to continue to grow.
Currently, Chinese automakers such as Chery(奇瑞), Great Wall(长城), and BYD(比亚迪) are deeply penetrating the Brazilian market. In March this year, BYD's production base complex in Bahia State, Brazil, officially started construction, with production expected to begin at the end of this year or early 2025. The BYD Brazil plant is designed with an annual capacity of 150,000 vehicles and will initially produce four models: the BYD Dolphin(海豚), Song Plus(宋Plus), Yuan Plus(元Plus), and BYD Dolphin Mini(海豚Mini).
In the first quarter of 2024, although Brazil's total imports decreased by 1.8% year-on-year, imports from China increased by 14%, mainly due to a 40.2% increase in import quantity. However, while the industry expects China's automotive influence in the Brazilian market to remain high, import taxes and the increase in Brazil's domestic production capacity may affect future growth rates.