Continuous deepening of cooperation between China and Latin America in the automotive industry in Brazil | Automotive | China and Latin America

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The Latin American region is an important market for China's automobile exports and also an important consumer market for Chinese automobile brands. Data shows that in 2022, China exported 772700 vehicles to Latin American countries, a year-on-year increase of 49.4%, accounting for approximately 1/4 of the total export volume. The top three countries in terms of total vehicle exports from China are Mexico, Saudi Arabia, and Chile, with Latin American countries occupying two spots. The recognition of Chinese automobile brands by consumers in Latin America is constantly increasing, and more and more Chinese automobile manufacturers are choosing to establish factories in Latin American countries. The cooperation in the automotive industry chain between the two sides continues to deepen, and the development potential of the new energy vehicle field is enormous.

The market share of Chinese automotive brands has significantly increased

China is Chile's largest source of automobile imports. According to data from the National Automobile Association of Chile, China's automobile market share in Chile reached a historic high of 39.73% in 2022. "It's not surprising that Chinese car brands are becoming increasingly popular," said Fernando Maldonado, the regional head of Great Wall Motors in Chile. Over the years, he has insisted on product innovation, which has enabled Chinese cars to have high standards in quality, safety, and other aspects. Chinese cars not only have well-equipped technology, but also highly competitive prices. In addition, China has a wide variety of automotive products, which can basically cover all segmented markets and meet the diverse needs of consumers.

The Mexican media "The Economist" recently reported on the increasing popularity of Chinese car brands in the Mexican market. According to data from the National Bureau of Geostatistics of Mexico, Mexico imported over 170000 cars from China in 2022, an increase of 117% from 2021. Out of every 4 imported cars in Mexico, 1 car is produced in China.

In recent years, Chinese automotive brands have significantly increased their market share in Peru. According to relevant statistics, Chinese brands have accounted for 26.3% in the field of light vehicles. "Chinese brand cars have price advantages, continuously improving quality, and various grades can meet different consumer needs," said Casten Samer, President of the Peruvian Automobile Association

According to data from the Ecuadorian Chamber of Automobile Manufacturers, at the end of 2022, for every 100 cars sold, approximately 40 were made in China, compared to 25 two years ago. According to the Daily Express News website of Ecuador, four of the top ten most popular car brands in the country come from China, namely Chery, Great Wall, Jianghuai, and Jetour. Petro Pez, the manager of a Chinese automotive brand assembly company in Ecuador, said that the rapid growth in sales of Chinese brand cars is due to their "good quality and good price".

Many internationally renowned automotive brands in Latin America have also deepened cooperation with Chinese automotive brands. In Mexico, General Motors collaborates with SAIC Group to purchase automotive products from China to serve local consumers. Eric Mires, the Latin American regional director of Urban Science, an automotive consulting and technology company under General Motors, said that the quality of Chinese automotive products is excellent and the consumer experience is good.

Drive the development of the industrial chain and promote local employment

Currently, Chinese car companies are continuously expanding investment cooperation and achieving complementary advantages in Latin American countries, including using local suppliers to produce automotive parts and cooperating with local automotive agents, which has effectively driven the development of the upstream and downstream industrial chain, brought convenience and benefits to consumers, and greatly promoted employment.

Last year, Great Wall Motors completed the acquisition and handover of its automotive factory located in the city of Ibrahimopolis, S ã o Paulo, Brazil, and simultaneously released its core market strategy in Brazil. It announced that it will invest 10 billion Brazilian reals in the next 10 years, creating approximately 2000 local jobs. Great Wall Motors will also collaborate with its 28 partners in Brazil to open 50 automotive sales and service points as well as 30 regional distribution centers throughout the country. It will invest 1 billion Brazilian reals in facility construction, employee training, and more.

"Great Wall Motors hopes to strengthen cooperation with local suppliers in Brazil and enhance competitiveness." Ricardo Bastos, Regional Government Relations Director of Great Wall Motors in Brazil, said that Great Wall Motors will make local investments in key components and deeply participate in the local industrial chain.

SAIC MG achieved wholesale sales of over 50000 vehicles and retail sales of over 48000 vehicles in Mexico in 2022, with a market share of 4.4%. The company has developed 72 distributors in Mexico, covering all administrative regions and providing nearly 4000 job positions locally.

In April this year, BYD Chile Branch obtained the production qualification and factory construction permit for lithium iron phosphate, a raw material for lithium batteries. According to reports, BYD plans to invest $290 million to build a lithium battery raw material factory in the Antofagasta region of northern Chile, which will start operating in 2025 to help create numerous job opportunities in the area.

China's new energy vehicles assist in decarbonization and emission reduction

With the deepening of low-carbon emission reduction and sustainable development concepts, Latin American consumers are increasingly concerned about the green performance of cars, and Chinese new energy vehicle brands are attracting the attention and love of many Latin American consumers.

February 2nd is Bogota's "Car Free, Motorcycle Free Day" aimed at encouraging low-carbon travel. On the day of the event, the BYD electric bus shuttling on the street became a beautiful scenic spot. At present, BYD has delivered a total of 1546 pure electric buses, and its electric vehicle business in Colombia also involves taxis, private cars, trucks, etc., greatly assisting the local development of green transportation. "BYD pure electric buses have advanced green and environmentally friendly technologies, providing passengers with a great green travel experience," said Andres Cortes, General Manager of the fleet operator "Chuxing".

Recently, an electric passenger car from Jianghuai Automobile won the "Best Sales Award of 2023" in the Brazilian market by the professional vehicle value evaluation agency "Kelly Blue Book". The first year depreciation rate of this model was only 7.03%, far below the market average of 15.69%, ranking fifth out of 141 participating models, indicating consumer trust in JAC Automobile. Jianghuai Automobile is the first brand in Brazil to only sell electric vehicles. "We take this business with the most serious attitude and focus 100% on electric vehicles," said Sergio Habib, President of Jianghuai Automobile Brazil.

In March this year, 700 BYD electric vehicles arrived at Victoria Harbour in the state of San Espirito in eastern Brazil, making it the largest batch of Chinese electric vehicles imported by Brazil. Great Wall Motors will also begin the intelligent and digital transformation of the Erasemapolis factory within this year. Brazilian Vice President Alkmin recently stated at the new energy vehicle experience event at the factory that China's new energy vehicles have brought cutting-edge technology to support the development of Brazil's automotive industry, and he looks forward to further strengthening cooperation between the two sides.

At present, VEMO, the largest new energy transportation operator in Mexico, has purchased a total of 1500 pure electric taxis from BYD Mexico, forming a fleet of pure electric taxis that will create over 3000 jobs in the local area. "The addition of pure electric fleets will greatly help reduce carbon emissions, improve the utilization of charging infrastructure, enhance industry competitiveness, and promote the development of local new energy industries. We firmly believe that promoting the development of green and sustainable transportation will better benefit Mexico and other countries," said Alejantro Rosset, co director of VEMO Transportation Platform