Brazil’s New Automotive Frontier: Chinese Carmakers, Local Production, Global Impact
2025 marks a turning point for Brazil’s automotive sector — and a critical moment for global investors to realign with the country’s new industrial strategy.
Faced with rising tariffs on imported vehicles and strong government incentives for sustainable manufacturing, major players are not just selling in Brazil anymore, they’re building in Brazil.
And at the center of this transformation: the Northeast led by Ceará and Bahia.
🚗 Recent Developments:
Omoda and Jaecoo (brands of Chery Group)
→ Will start local production at the former Troller factory in Horizonte, Ceará
→ Focus on hybrid and electric SUVs using a CKD assembly model
→ Targeting rapid expansion through lower production costs and export capacityBYD (Build Your Dreams)
→ Investing over €500 million in a new manufacturing hub in Camaçari, Bahia
→ Repurposing Ford’s former mega-facility to produce EVs, buses, trucks, and batteries
→ Export-oriented strategy to supply Latin America and future EU hydrogen corridorsGWM (Great Wall Motors)
→ Launching its Brazilian operations at the former Mercedes-Benz plant in Iracemápolis, São Paulo
→ Plan to produce hybrids, plug-ins, and fully electric vehicles domestically by 2025
→ Committing to ESG standards and localized production supply chains
🌎 What’s Driving This Shift?
Import tax hikes starting July 2026:
EVs, hybrids, and plug-ins will face tariffs up to 35%
Local production becomes essential for pricing competitiveness
Access to clean energy:
Northeast Brazil offers the best solar, wind, and hydrogen integration in Latin America
Export logistics:
Ports like Pecém (Ceará) and Aratu (Bahia) provide direct shipping lines to Europe and North America
State and federal incentives:
Special tax regimes for auto manufacturing, green mobility, and renewable energy integration
🏗 Broader Opportunities Opening:
Automotive parts suppliers seeking to establish in proximity to new factories
Logistics hubs and free trade zones expanding around Pecém and Camaçari
Specialized industrial real estate demand surging
Energy and green hydrogen integration projects aligned with mobility
Skilled labor training programs scaling in Ceará and Bahia
🧠 Strategic Insight
This is not just about cars it’s about clean industrial ecosystems, supply chain repositioning, and Brazil emerging as a global player in green mobility.
Northeast Brazil, once overlooked for heavy manufacturing, is now becoming Latin America's gateway for the future of mobility.
The early investors — those who secure assets, partners, and positioning now will be the ones leading in the next decade.
At Latitude3, we help global investors navigate this shift connecting capital, strategy, and opportunity where it’s just beginning.
