AUTONEWS

Brazil's vehicle industry prepares anti-dumping request against Chinese automakers

The established vehicle industry in Brazil is considering filing an anti-dumping lawsuit against Chinese automakers, which have relied on imports to establish themselves in the country.

“Market studies are underway,” said the president of the automakers association Anfavea, Marcio de Lima Leite, in a statement.

The executive responded to a question about a report in the newspaper O Estado de S.Paulo this Monday (27/01), which states that “the oldest automakers with factories in Brazil will file, in the next few days, a request for dumping investigation against Chinese companies that are selling imported vehicles in the country.”

According to the newspaper, “the main target is automobiles, but brands that sell trucks, buses, and agricultural and road machinery will also be included.”

According to the Ministry of Foreign Affairs, an anti-dumping lawsuit is filed against one or more companies that “export a product at a price lower than the price normally charged in its domestic market.” After an investigation of the country targeted by the dumping, it is determined whether the practice is causing “material damage” in the importing country. The measure is usually taken by unilaterally applying a surcharge on imports of products from the companies targeted by the investigation.

Brazil's vehicle sector ended 2024 with sales of 14.2 million new and used cars and light commercial vehicles, the highest volume ever recorded in the country, according to data released by Anfavea in the middle of the month, when it stated that the growth of the Brazilian new vehicle market last year, of 14.1%, marked the best performance among the main global vehicle markets, well above the global average of 2%.

Anfavea did not confirm whether a dumping request will be made in the coming days to the Ministry of Development, Industry, Trade and Services, but stated that it “defends free competition and the prevention of practices that harm the Brazilian automotive market, looking after customers, employees, dealers, manufacturers and the auto parts industry”. The biggest references currently among Chinese vehicle brands in Brazil are the electric and hybrid vehicle manufacturers BYD and GWM, which are building local factories in Bahia and São Paulo, respectively, while selling finished models produced in China.

When contacted, GWM stated in a statement that it “sees the action calmly, as it strictly follows international rules and Brazilian legislation for foreign trade”.

According to GWM, “the company is increasing the pace of hiring in Brazil with a view to starting production of its first electrified cars at the Iracemápolis factory, in the interior of São Paulo, scheduled for the first half of this year”.

Representatives from BYD and MDIC did not immediately comment on the matter.

According to data from the Brazilian vehicle dealership federation, Fenabrave, BYD ended December among the ten largest light vehicle brands in the country, with a 4.14% share of total sales in the domestic market, ahead of Honda and Nissan and practically tied with Jeep, from the Stellantis group. In the year to date, the Chinese company ranked last among the ten largest brands, with 3.1% of the market.

But considering only electric and hybrid vehicles, BYD and GWM led the Brazilian market by a wide margin, according to data from Fenabrave: BYD sold 76.8 thousand cars and light commercial vehicles in Brazil in 2024 and GWM 29.2 thousand units, compared to 20.3 thousand hybrids from Toyota and 8.6 thousand units from Volvo Car, a subsidiary of the Chinese company Geely.

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