China becomes Brazil’s biggest vehicle exporter in January, surpassing Argentina

China surpassed Argentina in January to become Brazil’s largest exporter of vehicles, solidifying Chinese brands’ dominance in the region’s biggest car market and undercutting a long-standing Argentine trade advantage within Mercosur.

According to industry figures reported by Autoweb on Monday, Chinese vehicles sent to Brazil reached 16,800 units in January, versus 13,400 from Argentina.

It underscores the erosion of Argentina’s decades-long grip on Brazil’s import market, after China first led on a quarterly basis in early 2024.

Argentine cars are typically packed with a lot of Brazilian-made parts, while Chinese vehicles come fully assembled, leapfrogging Brazil’s auto supply chain.

Chinese car imports to Brazil surged to US$375 million in January, more than 10 times the value recorded a year earlier, according to trade data. They also accounted for roughly 65 per cent of Brazil’s car import value that month, the data showed.

07:39

Pony.ai set to further open China’s autonomous-driving frontier

The surge mirrors the pattern that Chinese manufacturers have followed in other markets, importing rapidly and then assembling locally before eventually deepening production. In Brazil, Great Wall Motors and BYD lead the charge, growing quickly through imports while building factories and supplier networks.

South China Morning Post