How electric cars and Chinese automakers redesign the Brazilian automotive industry The last Corolla produced in Indaiatuba (SP) in June and the first electrified vehicles that begin to leave the GWM factory in Iracemápolis (SP), in the region of Piracicaba (SP), tell the same story: the transformation of the Brazilian automotive market. Data from the National Association of Motor Vehicle Manufacturers (Anfavea) and a survey by g1 indicate that Brazil is not losing car factories, but changing its industrial profile. This trend, with greater momentum after the pandemic, takes place in factories left behind by traditional brands and often occupied by automakers focused on electrification. This occurred in the interior of São Paulo with Mercedes-Benz, in Iracemápolis, whose factory was occupied by the Chinese company GWM. It also happened with Ford, in Camaçari (BA) and Horizonte (CE), which gave way to investments from the Chinese BYD and the British MG Motor, respectively. ?Electrified vehicles include hybrid and electric models, which use electricity to reduce or replace the use of fossil fuels. New manufacturers have also announced national production of electrified vehicles. See the infographic below. According to an expert interviewed by g1, the trend is the development of increasingly efficient, technological and electrified vehicles, with a strong presence of Chinese industry in this transformation. In this context, Anfavea defends measures to protect the competitiveness of investments made by automakers in the national automotive industry to face the increase in imports from Asia. Furthermore, the entity is against the car assembly model that has been adopted by the Chinese (understand below). In a note, the Ministry of Development, Industry, Commerce and Services informed that it temporarily resumed import quotas as they are aligned with fleet renewal, innovation and decarbonization actions — click here and read the note in full. It is #FAKE that Toyota will leave Brazil MG4 Urban arrives for R$ 129,990; electric car will be made in Ceará In this report, you will understand: ? Growth of the automotive sector ???Unprecedented transformation ?Gradual entry into the Brazilian market ?Alert in the national industry ??Impact on the automotive sector ? What does the federal government say? Infographic shows where automakers closed operations and where they decided to invest Art/g1 Growth of the automotive sector According to Anfavea, national vehicle production went from 2.36 million vehicles in 2022 to 2.64 million in 2025. ?In the first half of 2026 alone, 1.37 million units were already produced. At the same time, electrified cars went from being a niche to becoming one of the drivers on the market. In 2016, Brazil sold just over a thousand electrified vehicles. Ten years later, in just the first half of 2026, there were already more than 215 thousand units, according to the Brazilian Electric Vehicle Association (ABVE). Infographic shows the transformation of the automotive market in Brazil Arte/g1 The growth of hybrids and electric vehicles has also redesigned the share of the Brazilian electrified market occupied by traditional automakers. In 2022, the Japanese Toyota was comfortably leading and concentrated 55.3% of sales in the electrified segment. Next came traditional automakers and luxury European brands, such as Volvo, BMW, Land Rover and Mercedes-Benz. Four years later, the scenario is different. In the first half of 2026, the Chinese BYD and GWM lead the market — the first with a 46.08% share and 99 thousand vehicles sold. Toyota fell to third place, followed by two other Chinese companies in the ranking: Geely and Omoda Jaecoo. Why Brazil is attractive to the Chinese? It is one of the largest automotive markets in the world. Electrification is still in its early stages, leaving room to shape the market. Barriers to entry have historically been lower than in other developed markets, which have protectionist barriers. Unprecedented transformation For the economist at the Federal University of São Carlos (UFSCar) and specialist in China's geopolitical and technological rise, José Eduardo Roselino, the industry is experiencing an unprecedented transformation. "For 100 years, the automobile industry only had incremental innovations, small improvements that did not change the structure of the car. This is changing now. We are going through a transformation linked to decarbonization and the energy transition, with hybrid, plug-in hybrid, electric vehicles and other new technologies emerging," he said. According to him, the advancement of Chinese automakers is linked to the mastery of technologies such as software, semiconductors and electronic systems. "The automobile is increasingly becoming a computer on wheels", he summarized. Furthermore, according to him, the Chinese have a huge competitive advantage because they produce on a huge scale and are able to continually reduce costs. MORE automakers complain about Caoa Chery in Jacareí, SP Roosevelt Cássio/ Sindicato dos Metalúrgicos de São José dos Campos Gradual entry into Brazil The history of the entry of Chinese automakers into the Brazilian market can be divided into phases. Initially, from 2009 onwards, they were importers of combustion vehicles. Subsequently, from 2014 onwards, they began to install local factories. In the following decade, they began to test the acceptance of electrified models with Brazilian consumers. To achieve this, they decided to invest in idle factories and develop national production projects. The debut of a Chinese automaker, with a factory in Brazil, was the Chinese Chery, in Jacareí (SP), in 2014. The focus at the time was to sell popular, low-cost cars. In