Chinese vehicles account for 52% of Brazil’s auto imports in 2026

Brazil’s imports of Chinese vehicles more than doubled in the first seven months of 2026, as automakers from China expanded their presence in the Brazilian market.

Shipments from China to Brazil rose 105.4% from the same period last year, according to data from Anfavea, Brazil’s national automakers association.

Overall, Brazil imported 344,100 motor vehicles through July, up 25.7% from the first seven months of 2025.

Of that total, more than 180,000 vehicles came from China, equivalent to 52.4% of all imports during the period.

The increase in imports contrasts with weaker Brazilian vehicle exports. From January to July, Brazil shipped 255,900 motor vehicles to other markets, down from 323,000 in the same period of 2025.

That represents a 20.8% drop in exports. In July alone, however, exports totaled 39,300 units, up 6.8% from June.

For Anfavea, import volumes already represent a significant share when compared with output from factories installed in Brazil.

Argentina played an important role in the decline in exports. Brazilian shipments to the country, Brazil’s main automotive trade partner, fell 35.4% in the year to date.

According to Anfavea, with the exception of Colombia, Brazilian vehicle shipments fell to every Latin American market.

Factories in Brazil produced more than 1.6 million vehicles in the first seven months of 2026, up 8.3% from 1.5 million units in the same period last year.

In July, production reached 253,900 units, up 3.1% from June and 5.9% from July 2025.

The performance placed Brazil among the fastest-growing vehicle-producing countries during the period.

Through July, Brazilian vehicle production rose 8.8%, behind only India, where output increased 14.5%. In the same comparison, Japan grew 2.9%, while the United States and China posted declines of 11.7% and 4%, respectively.

“It is an expressive result for our industry, despite export difficulties and the entry of imported vehicles at levels well above the average seen in previous years,” said Calvet.

Sales hit monthly high

New-vehicle sales in Brazil posted their strongest monthly result of the year in July.

A total of 279,500 motor vehicles were registered during the month, up 2.6% from June and 14.9% from July 2025. The result came despite the school holiday period.

From January to July, registrations surpassed 1.7 million units, a 17.9% increase from the same period last year.

Daily sales, however, edged lower. July had 23 business days, compared with 21 in June. As a result, an average of 12,200 vehicles were sold per day, the slowest pace in four months.

Even with the decline in the daily average, July’s pace remained above the level seen in the same month of 2025, when 10,600 vehicles were sold per day.

The result supports Anfavea’s revised forecast for a 12.1% increase in vehicle sales over the course of 2026.

Electrified vehicles were another highlight. Electric and hybrid models accounted for 23.5% of all vehicle registrations in Brazil in July, the highest share on record and above expectations.

Their share has advanced sharply in one year.

In July 2025, electric and hybrid models together represented less than 11% of sales. In the year to date in 2026, registrations of electrified vehicles have grown 120.8%.

Among electrified models, fully electric cars reached their highest monthly volume on record in July, with 25,800 units registered.

July therefore combined the highest monthly vehicle sales volume of the year with a record share for electrified models.

Through July, total vehicle registrations were up 17.9%, while electrified vehicle registrations rose 120.8%.

Chinese automakers step up offensive

The push by Chinese automakers in Brazil is expected to intensify over the next few years. Seven new brands have confirmed plans to enter the country by 2028.

The movement includes four brands linked to Chery International, as well as Dongfeng, which will use the DFM acronym in Brazil, and IM, MG’s luxury division. The strategy comes as Chinese manufacturers already have a strong presence in the Brazilian market.

Brazil became the largest importer of Chinese cars in the first half of 2026.

Chery International confirmed the arrival of iCAUR in Brazil and also announced plans for Lepas, Luxeed and Freelander. According to the company’s schedule, iCAUR and Lepas will start sales in 2027. The group already operates Omoda and Jaecoo in Brazil.

In 2028, Luxeed and Freelander will follow under the Exeed banner. For 2026, the group plans to have more than 150 dealerships and sell more than 10,000 cars per month. By 2031, its goal is to exceed 1,000 dealerships and 500,000 vehicles sold in the year.

In addition to Chery’s brands, Dongfeng confirmed its entry into the Brazilian market and will operate under the DFM name.

Felipe Amaral de Souza, head of sales and network expansion, said the vehicles will be officially presented to the public in the coming weeks.

DFM already has 57 approved dealerships and 31 dealer groups, with plans to be present in 21 states and the Federal District.

IM, MG’s luxury division, is also expected to arrive in Brazil. Although MG has British origins, the brand was acquired by China’s SAIC and is no longer connected to the models that made it an icon of the British automotive industry in previous decades.

The expansion of Chinese brands is intensifying competition in Brazil’s auto market and bringing new players into direct competition with traditional manufacturers.

That stronger competition is already showing up in new-car prices. According to a study by Bright Consulting, the average price of new vehicles fell 1.5% in real terms in 2026, after inflation.

The average list price suggested by automakers rose 1.4% in nominal terms to R$166,900, while official inflation accumulated over the period was 3.18%.

Analysts said the expansion of Chinese automakers was the main factor behind the real decline in prices, increasing competition and forcing traditional manufacturers to reduce margins.

Despite greater supply and pressure on prices, new cars remain out of reach for many Brazilians. Specialists interviewed by g1 said stagnant income and high interest rates on vehicle financing continue to make purchases difficult.

Source: G1

Sharing is caring!