Photo: screengrab from the official website of Brasil 247

By Brasil 247 - China nearly tripled its vehicle exports to Brazil in the first quarter of 2026, consolidating its position as the main external supplier of automobiles to the Brazilian market and surpassing traditional rivals such as Argentina, according to Brasil 247 citing a report by Valor Econômico.

Based on data from Chinese customs authorities, shipments to Brazil totaled $2.16 billion between January and March, compared to $763.8 million in the same period of 2025. The figure also exceeded the previous record for the period, which stood at $1.17 billion in 2024.

With this performance, Brazil rose from seventh to third place among the largest destinations for Chinese vehicles worldwide, trailing only Russia and the UK. In the electrified segment — including fully electric and hybrid vehicles — Brazil also ranked third, behind Belgium and the UK.

The expansion of Chinese exports is not limited to electric vehicles. Sales of combustion-engine cars also doubled in value, moving Brazil from 16th to seventh place in this segment's global ranking.

Experts interviewed by Valor Econômico identified three main drivers behind the surge: anticipation of higher import tariffs, a more favorable exchange rate, and a cycle of new model launches.

Tariffs on electric and hybrid vehicles are expected to reach 35% in July, up from the current 28% for plug-in hybrids and 25% for electric vehicles. According to Tulio Cariello, from the Brazil-China Business Council, the trend reflects a race by automakers to take advantage of the window before tariff increases.

Data from Brazil's Secretariat of Foreign Trade show that imports of cleared Chinese automobiles totaled $1.5 billion in the quarter, an increase of 552.5% compared to the same period in 2025. China accounted for 65.6% of all cars imported by Brazil.

Argentina, previously the main source of imported vehicles, ranked second with an 11.3% share and $253.2 million, representing a decline of 25.5%.

The exchange rate also contributed to the trend. In the first quarter of 2025, the dollar fluctuated between 5.80 and 5.90 reais. In the same period of 2026, it ranged between 5.20 and 5.30 reais, reducing import costs.

Experts expect the flow of imports to remain strong in the coming months. In the medium and long term, however, China's presence in Brazil is likely to shift toward greater local production.

Automakers such as BYD and GWM are advancing with their own factories, while Geely and Leapmotor have partnerships with Renault and Stellantis. GAC has also announced plans to begin production in Brazil from 2027.

(Reported by Brasil 247 on April 28, 2026)