Electric vehicle (EV) production in Brazil is set to surge in 2026 as more Chinese automakers open assembly plants in the country and non-Chinese players in the Brazilian market start responding with their own EV models, a shift that is expected to slow imports.
Brazil's EV market has been largely import-driven since the first influx of Chinese electric vehicles in 2023, when BYD and Great Wall Motor (GWM) imported around 30,000 cars, according to data from Brazilian EV association ABVE.
That is expected to change in 2026, following the ramp-up of at least six Chinese automakers' assembly plants in Brazil and a slew of new, locally-made electrified models from legacy brands.
Geely, MG Motor, and Omoda/Jaecoo — a subsidiary of Chery Group — plan to begin local EV assembly in 2026. Meanwhile, BYD, GWM, and Chevrolet, the latter through a joint venture with China's SAIC and Wuling, started assembling EVs in Brazil in 2025. Chery has been producing vehicles in Brazil — both EVs and internal combustion engine (ICE) models — since 2017.
Chinese brands have been actively exploring the Latin American market for the past three years and have seen high adoption rates for their vehicles. Chinese automakers accounted for 10pc of all passenger vehicles sold in Brazil in 2025, according to specialized consulting firm Bright.
Several brands now see Brazil as a hub to locally build vehicles targeting both the Brazilian market and exports to neighboring countries.
Bright expects overall EV sales in Brazil to rise to 275,000 units by year-end 2025, a 55pc increase compared to 2024 and by far the largest increase in Latin America. Sales could more than double year on year in 2026, rising to 600,000 units and capturing a 22.9pc market share, the consultancy said.
Chinese automakers are expected to account for just under half of Brazil's 2026 EV sales at 270,000 units, representing a 61pc increase compared to 2025. Of that total, 170,000 units are expected to be imported from China. Chinese brands imported around 140,000 consumer-ready units in 2025, data from Bright shows.
The remaining 100,000 EVs Chinese automakers plan to sell in Brazil are expected to be assembled locally starting in 2026, Bright said. This will effectively slow import growth as domestic supply will reduce the need for consumer-ready units built overseas,
BYD, GWM and Chevrolet assembled 25,000 cars in the country in 2025, according to Argus' estimates, based on data from the automakers.
Chinese and legacy automakers will manufacture between 250,000-300,000 EVs in Brazil in 2026, making it the first year in which the country will have a sizeable domestic EV production.
Legacy carmakers strike back
Legacy and ICE automakers with established production in Brazil are set to intensify EV development and production in 2026 to compete with Chinese automakers for Brazilian buyers' affections, according to Bright.
Brazilian buyers became more receptive to Chinese brands — and EVs in general — after the Covid-19 pandemic, when legacy automakers raised prices and companies from China filled the gap with more affordable vehicles, better technology and fresh designs.
EVs are popular among Brazilian consumers and have found a market even away from big cities. Drivers who cover long distances daily can save up to R2,500/month ($465/month) due to energy-versus-fuel costs, according to EV charging infrastructure manager Tupi.
Brands such as Stellantis, Volkswagen, Renault and Toyota have plans to manufacture new hybrid models in Brazil starting in 2026.
Most of those vehicles will be mild hybrids (MHEV), an ICE vehicle with a small 12V or 48V non-plug-in battery that assists the gas-powered engine and improves fuel efficiency. MHEVs are legally considered EVs in Brazil and are eligible for environmental tax exemptions and other benefits in line with traditional EVs.
Mild hybrids are cheaper than regular hybrid electric vehicles (HEVs) and are also typically sold by more established carmakers, making them an attractive option for customers who want a cheaper EV or a big-name brand.
Bright expects Brazilian consumers to buy 200,000 MHEVs in 2026, most of them manufactured locally.
Caoa Chery, a subsidiary of Chery Group, is the only Chinese carmaker to locally manufacture MHEVs. Their competitors from China only market regular EVs, including fully electric vehicles (BEV) and HEVs. Toyota is the only non-Chinese automaker in Brazil to locally manufacture HEVs.
Bright expects a total of 2.62mn vehicles to be sold in Brazil in 2026, up by 2.3pc from this year's 2.56mn units.
