A massive influx of affordable electric vehicles (EVs) from China’s BYD has reached Brazil, with the BYD Shenzhen—world’s largest car-carrying ship—docking at Itajaí port on May 28, 2025. The vessel, loaded with the equivalent of 20 football fields’ worth of vehicles, marks a bold move by BYD to dominate Brazil’s growing EV market.

However, this surge has triggered a backlash from local auto industry leaders and workers, who worry about job losses and economic strain. The development, detailed by 路透社, highlights a pivotal moment for Brazil’s green-car transition and the challenges facing its EV landscape.

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Industry Trends and Economic Impact

BYD, the world’s top producer of electric and plug-in hybrid cars, targets Brazil as a key growth market, with China-built vehicle imports expected to rise nearly 40% this year to about 200,000 units, per Brazil’s main auto association. This surge would account for roughly 8% of total light-vehicle registrations.

The company offers low-priced options, with its entry-level Seagull model priced below $10,000, squeezing profit margins but appealing to cost-conscious consumers. Yet, this flood of imports has alarmed Brazilian auto-industry officials and labor leaders, who fear it could hinder domestic production and cost jobs.

Chinese automakers have pledged to build local factories, but progress stalls. BYD’s plan to repurpose a former Ford plant in Bahia faced delays due to labor abuse investigations on the construction site, pushing full production to December 2026, according to local officials cited by Reuters. Similarly, GWM (Great Wall Motor) delayed its Mercedes-Benz plant restart by over a year, though it expects operations to begin this year. These setbacks reflect broader tensions as Brazil balances EV adoption with economic protectionism.

Regulatory Shifts and Future Outlook

Brazil’s government eliminated tariffs on EV imports in 2015 to boost adoption but reintroduced a 10% tariff last year to encourage domestic investment, with plans to increase it to 35% by 2026. Industry groups like ANFAVEA are lobbying to accelerate this rise to 35% from 10% within a year, citing the need to protect local jobs.

A ministry spokesperson told Reuters, “The schedule for the gradual resumption of tariffs, with decreasing quotas, was established to allow companies to continue with their development plans and respect the maturity of manufacturing in the country.”

Additionally, a policy allowing toll-free imports up to $169 million for plug-in hybrids and $226 million for battery-electric cars by July 2025 incentivizes front-loading shipments, analysts note.

This regulatory tug-of-war pits Brazil’s green ambitions against its industrial base, especially as three Chinese carmakers now command 80% of the EV market, per the EV association ABVE.

Ricardo Bastos, director of government relations at GWM Brazil and ABVE president, stated, “This year, imported cars will coexist alongside cars produced in Brazil.”

As Brazil prepares to host the COP30 climate summit in November 2025, President Lula da Silva’s government scrambles to revive the industrial economy while leveraging its abundant lithium reserves—key for EV batteries—though infrastructure to process these minerals remains undeveloped.

The arrival of the BYD Shenzhen signals both opportunity and challenge, setting the stage for a transformative yet contentious chapter in Brazil’s EV landscape.

Photos courtesy of BYD.