Chinese automotive giant BYD Group has begun building an industrial complex in Brazil and expects it to be operational as soon as early 2025.
The Brazilian market is protected from most car imports with prohibitively high customs duties. Only hybrids and EVs had been exempt – and only until recently. When the country loosened up its import regulations, international carmakers increased their shipments there by 46.4% in Q1 2024. 40% of all vehicles imported were EVs and hybrids from China.
Realizing that the protectionist measures weren’t enough, the local authorities bumped up the customs fees by 10% for BEVs and by 15% for all types of hybrids. The government also announced that these fees would reach 35% by July 2026. BYD can easily circumvent these limitations by building a factory in the country.