In January 2025, China became Brazil's top vehicle exporter, delivering 16,800 cars to the market. Argentina, which had led for over 30 years, exported 13,400 units, industry figures reported by Autoweb showed on Monday. This marks a key shift in Brazil’s car import market. Chinese cars mostly arrive fully assembled, bypassing Brazil’s auto supply chain. In contrast, Argentine vehicles include many Brazilian-made parts. The value of Chinese car imports surged to US$375 million in January, more than 10 times the previous year. They made up about 65% of Brazil’s car import value that month. Chinese brands like Great Wall Motors and BYD are expanding rapidly. BYD shipped 7,292 electric cars through the Itajai port in southern Brazil in May. Great Wall Motor registered over 15,000 vehicles in the first half of last year. Geely also returned to Brazil after nine years. However, Brazil’s carmakers association, Anfavea, criticized this assembly method. They say such simplified production creates fewer local jobs and risks established factories. Anfavea reported that in January, Brazil’s vehicle production dropped 12% and sales fell slightly. Electric vehicles reached a record 16.8% of sales, with about 35% made in Brazil. Exports fell 18%, mainly due to weak demand from Argentina. Higher interest rates and tougher credit also affected Brazil’s vehicle market, especially heavy trucks. Despite China’s fast growth in Brazil, the country is only the fifth-largest Chinese export market after Mexico, Russia, the UK, and the UAE. The China Passenger Car Association said China exported 8.32 million cars in 2025, a 30% increase from 2024. This shows the rise in Brazil is part of China’s broader global growth in car exports.