“There is a competitive gap with Chinese brands in the market that needs to be addressed,” said Antonio Filosa, the company’s regional president, at a press conference in São Paulo. “An equalization mechanism for this type of competition should be designed and implemented.”

According to Filosa, China’s structural competitiveness is the result of two decades of coordinated industrial policy and investment, creating a highly efficient production ecosystem. He also pointed to excess industrial capacity in China, which is increasingly being directed to external markets.

“With the U.S. market largely closed and Europe debating the issue, South America—and Brazil in particular—has become a primary destination,” he said.

Filosa said it is still difficult to assess the full impact of current tariffs, given the large volume of vehicles imported in previous months that are still in transit or being distributed.

“What needs to be done is to technically measure this gap and define how to translate it into an equalization mechanism, whether through existing global tools or a specific solution—not just tariffs,” he said.

The company suggests that the Brazilian government and the National Association of Vehicle Manufacturers (Anfavea) conduct a technical study to quantify the gap and design an appropriate policy response.

Filosa cited the United States as an example, noting that the country imposed tariffs of up to 100% on Chinese-made electric vehicles and adjusted CO₂ requirements to avoid an unintended contraction in the domestic market.

“In our view, the U.S. administration carried out a technical assessment to understand this competitiveness gap and determine how to protect the sustainability of its auto industry,” he said.

In Brazil, however, Filosa described operations as stable and growing, in contrast with challenges faced by the group in other regions.

“South America is performing very well. It is not a source of concern—on the contrary, it represents an opportunity,” he said.

Despite strong sales performance, he noted that profitability is under pressure due to high costs and logistical bottlenecks, which make local production more expensive than in other markets.

“The weight of logistics costs in the structure of a Brazilian-made vehicle is higher than in Europe or North America,” he said.

Leapmotor partnership

Stellantis said it plans to begin production of vehicles from Chinese brand Leapmotor in Brazil in the first quarter of 2027, with two models to be manufactured at its Goiana plant in the state of Pernambuco.

The partnership makes Brazil the first country outside China to produce Leapmotor vehicles. The models—B10 and C10—will use Stellantis technology that combines an internal combustion engine to power an electric drivetrain.

“We are setting up the production line and training personnel. It is a strong technical partnership,” Filosa said, adding that full operations should be in place by early next year.

Founded in 2015 in Hangzhou, Leapmotor produces electric and hybrid vehicles. Stellantis acquired a roughly 20% stake in the company in 2023 and established a joint venture to expand the brand internationally.

Asked about the apparent contradiction between advocating protection measures and partnering with a Chinese automaker, Filosa said the company’s strategy differs from that of pure exporters.

“Our approach is different. We localize production and a large share of components, including the engine,” he said.

Middle East

Stellantis said it is monitoring the conflict in the Middle East involving the United States, Israel, and Iran, and warned that rising inflation and shifting demand could affect operations.

“There is significant market volatility in a complex geopolitical environment,” Filosa said.

Operations in the Gulf region—including the United Arab Emirates and Saudi Arabia—are already facing disruptions, with some decline in sales volumes expected.

“We are already anticipating some volume losses, which are manageable for now. But much depends on how long the geopolitical crisis lasts,” he said.

Filosa added that inflation remains a key risk, depending on the persistence of global volatility.

“Volatility and inflation are real risks ahead,” he said.

Source: Valor International

The operation took place with the port’s access channel fully navigable, ensuring safe navigation and continuity of port operations.

With the Good Wood call, the port has now handled three Ro-Ro vessels this year, totaling 1,515 vehicles moved. In addition to the latest operation, the Victoria Highway handled 628 units and the Dover Highway carried 457 vehicles.

The return of this type of operation reflects market confidence in the Port of Itajai and broadens the range of cargoes handled, reinforcing the terminal’s position as an efficient and strategic logistics alternative in Brazil.

“The handling of high-value vehicles reinforces market confidence in the Port of Itajai. We are making a strong comeback, with the channel fully navigable, expanding our operations and showing in practice that the public port has the capacity to attract new business, generate jobs and drive development in our region,” Port of Itajai Superintendent João Paulo Tavares Bastos said.

Source: Porto de Itajaí

The EX5 EM-i aims to redefine industry standards by delivering unprecedented smart mobility to global consumers. The model will initially be imported into the Brazilian market, with local production scheduled for the second half of the year at the Ayrton Senna Industrial Complex.

The EX5 EM-i is built on the GEA (Global Intelligent Electric Architecture), standing out for its structural integrity and efficient use of space. It offers an exceptional driving experience and superior energy efficiency for zero- and low-emission vehicles.

“We are very excited about the arrival of the Geely EX5 EM-i in Brazil. The model is very important to the brand’s strategy and expands Geely’s portfolio in the country, offering aerodynamic design, intelligent efficiency, and a connected environment, combined with Geely’s safety DNA for consumers seeking a high-tech SUV with extended range,” said Alex Chen, Geely’s commercial director.

Geely EX2: a sales success

Alongside the first batch of the EX5 EM-i, another shipment of the Geely EX2 also arrived at the Port of Paranaguá this month to meet growing demand for the fully electric hatchback in the local market. The EX2 is a sales leader in China and was also the world’s best-selling fully electric compact vehicle.

Source: Press Office

“The record volume reinforces the importance of the Port of Paranagua in Brazil’s vehicle-handling market. The entire operation took place at berth 219, which is dedicated exclusively to this type of activity,” Portos do Parana Chief Executive Luiz Fernando Garcia said.

The operation began on Sunday night (March 22). Despite rain in the port area, activity started on schedule and involved more than 100 workers in the first shift alone. Stevedores, support crews responsible for lashing and unlashing cargo, inspectors and other personnel took part in the process, which lasted 17 hours.

“We handled an average of 220 vehicles per hour, recording efficiency above that of other Brazilian ports, which operate at between 150 and 180 vehicles per hour,” Ports Operations Director Gabriel Vieira said.

Beyond speed, Portos do Parana also stands out for the quality and efficiency of the professionals involved, as this type of operation requires maximum care to avoid damage.

“In 17 hours, we achieved excellent productivity, with safety and efficiency, meeting our clients’ expectations,” Gustavo Carvalho, operations supervisor at Marcon Logistica Portuaria, said.

All vehicles unloaded will be sent to Renault’s yard in Sao Jose dos Pinhais, in the Curitiba metropolitan area, for later distribution across the country.

Specialized infrastructure

The growth of vehicle operations in Paranagua is also linked to the expansion of maritime services in the automotive segment. In 2025, the Port of Paranagua added a new service with the arrival of the Neptune Hellas, a vessel operated by Greek shipping line Neptune Lines and specialized in vehicle and roll-on/roll-off cargo transport.

The first operation on that service took place in September 2025 and was handled by Ascensus Gestao e Participacoes, which is responsible for one of the regulated areas of the organized port, covering 74,100 square meters and with static capacity for 4,000 vehicles.

The new route expanded the port’s connections with other countries and consolidated Paranagua as one of Brazil’s main logistics corridors for the automotive sector, which now has five regular vehicle services.

The port’s strategic location, close to automakers based in Parana and southern Brazil, combined with infrastructure dedicated to vehicle handling, has strengthened the Port of Paranagua as one of the country’s main hubs for vehicle imports and exports.

In 2025 alone, Portos do Parana handled more than 106,000 vehicles in import and export operations.

Source: Portos do Paraná

According to information published on the website of Uruguay’s National Ports Administration, or ANP, “this vessel was launched in 2021 and has capacity for approximately 7,600 units. In addition to discharging import cargo, it will load 300 units manufactured by Nordex.”

It was also reported that the vessel “is operated by Murchison and represented by maritime agency KMA, Grimaldi Lines’ representative in Uruguay.”

ANP also confirmed that three more calls under the service have already been scheduled, beginning with the arrival of the Grande Houston on April 30, followed by the Grande Shanghai on May 18 and the Grande Mirafiori on July 5.

The service also offers a transshipment option to Asuncion, Paraguay, via Montevideo.

Source: Administración Nacional de Puertos (ANP)

Under the plan announced, operations will begin with an order for 100,000 vehicles, split evenly between the two countries, with 50,000 units for each. The exact shipping dates were not disclosed, but the production allocation at the plant has already been secured. The expectation is that the total will be divided into batches and exported in line with demand in each market.

It is worth noting that the current expectation is for the plant to begin effectively producing vehicles from July onward. At present, the facility assembles models that arrive as imported kits under the so-called SKD, or semi-knocked down, process.

With this strategy, BYD will follow the same path as other major automakers with factories in Brazil. Volkswagen, Toyota, Fiat and Jeep, for example, use their production bases in the country to supply several Latin American markets.

Inside the Camaçari plant

With a total area of 4.6 million square meters, the Camaçari complex is BYD’s largest outside China. It has been receiving 5.5 billion reais in investment and currently assembles the Dolphin Mini, Song Pro and King models under the SKD regime. Initial production capacity is 150,000 vehicles, with potential to reach 300,000 in a second phase.

Source: AutoEsporte

The vehicles will be manufactured at the Bahia plant and shipped to the two countries, although the specific models and delivery schedules have not yet been disclosed. The facility is currently BYD’s only automobile factory in the Americas.

The plant has an initial production capacity of 150,000 vehicles per year, with plans for gradual expansion that could raise output to as much as 600,000 units annually. The complex began operations recently and is already producing electrified models such as the Dolphin Mini, King and Song Pro.

The company’s expansion comes amid the rapid growth of electromobility in the region. Brazil has become BYD’s largest market outside China, with about 113,000 vehicles sold in the country last year, according to industry data.

In addition to vehicle manufacturing, the company has announced a BRL 300 million investment to build a research center in Rio de Janeiro, with construction expected to begin later this year and completion scheduled for 2028.

With rising international orders and new investments, BYD’s strategy is to turn Brazil into a regional hub for the production and export of electric vehicles, serving growing demand across Latin America.

Source: Portalin

Industry leaders, however, fear the issue could return to the government’s agenda. Igor Calvet, president of Associação Nacional dos Fabricantes de Veículos Automotores (ANFAVEA), said recently that if a new request emerges to cut import tariffs or reinstate quotas, the association “will maintain its position in defense of domestic production.”

There are reports that Chinese automakers are mobilizing to seek renewed incentives. Behind the scenes, executives at longstanding manufacturers say companies would likely reconsider local investment and production plans if incentives for semi-knocked-down imports were reintroduced. Brazil’s current model prioritizes full vehicle manufacturing, with high levels of locally sourced auto parts.

Another positive development for the sector in early 2026 was the launch of the Move Brasil program, which makes R$10 billion in credit lines available through the Brazilian Development Bank (BNDES) for the purchase of new and used trucks produced in Brazil.

Of the total, R$1 billion is earmarked exclusively for independent truck drivers and cooperatives, a segment that accounts for a significant share of the country’s oldest trucks in circulation.

The program follows months of lobbying by vehicle manufacturers—particularly heavy-truck makers—who warned the government about successive sales declines driven by high interest rates.

The administration has presented the initiative as a way not only to support the industry but also to curb emissions, improve logistics efficiency, enhance highway safety, and accelerate the replacement of trucks more than 20 years old.

Participants have until May 25 to apply and can finance up to R$50 million, with a maximum term of five years and a six-month grace period. Annual interest rates range from 13% to 14% and are lower if a truck more than 20 years old that remains in operation is traded in for scrapping. Only trucks manufactured from 2012 onward, with certified local content and compliance with environmental standards, are eligible.

Brazil’s auto industry produced and sold fewer vehicles in January compared with both December and the same month a year earlier.

Output totaled 159,600 cars, light commercial vehicles, trucks, and buses last month, down 13.5% from December and 12% year over year. According to ANFAVEA, the annual comparison reflects a high base, as January last year marked the strongest result for the month in six years.

Domestic sales of 170,500 units fell 39% from December and slipped 0.4% from a year earlier. In practice, volumes were broadly stable, as there was one fewer business day this year.

The market for hybrid and electric vehicles, however, remains buoyant. Electrified models accounted for 16.8% of registrations in January, a record high. Within that segment, 35% were hybrids produced in Brazil—also the highest share on record.

Exports declined, with 25,900 vehicles shipped in the first month of the year, down 18.3% year over year. The main factor was a 5% drop in sales to Argentina, the leading destination for Brazilian-made vehicles.

January is an atypical month for the sector, as factories resume operations following collective vacations. It rarely signals broader trends. Most forecasts suggest production levels in 2026 are unlikely to change significantly from 2025.

Source: Valor International

Vehicle output fell 12% compared with the same month last year and dropped 13.5% from December, with total production reaching 159,600 units.

Sales declined 0.4% year on year and plunged 39% from December levels, with 170,500 vehicles licensed. Anfavea said January sales were “virtually stable” on an annual basis due to one fewer working day in 2026.

By segment, passenger car sales rose 1.4% year on year, while light commercial vehicles increased 3%. In contrast, registrations of heavy vehicles declined in January, with bus sales down 33.9% and truck sales falling 31.5%.

One of the highlights in licensing data was electrified vehicles, which accounted for a record 16.8% of total sales. According to Anfavea, 35% of these electrified vehicles are produced domestically.

“This is the best percentage in our historical series. Around 27,000 units were registered, and 9,600 of those were produced here in Brazil,” said Anfavea president Igor Calvet.

Exports, meanwhile, fell 18.3% compared with January 2025, totaling 25,900 units shipped. Anfavea said the decline was driven mainly by a 5% drop in shipments to Argentina. Compared with December, however, exports rose 38.3%.

“This was driven by a 5% reduction in Argentine demand. This is something Anfavea continues to monitor closely, as it may signal a slowdown in demand from our neighboring country, one of Brazil’s main automotive trading partners,” Calvet said.

Programs

Speaking at a press conference, Calvet welcomed the government’s decision not to extend the tax exemption on imports of disassembled vehicle kits, which expired in January. One of the companies benefiting from the exemption had been Chinese automaker BYD, which operates in Brazil largely under the SKD model, in which vehicles are imported nearly complete and assembled locally with lower industrial complexity.

“I welcome this because I believe the non-extension encourages local production. By not extending it, we are all moving toward more sophisticated manufacturing, greater localization and more job creation here. This is a position in defense of domestic production,” he said.

On the Sustainable Car program, which eliminates the industrial products tax (IPI) on entry-level vehicles made in Brazil with high energy efficiency and sustainability standards, Calvet said he does not expect the initiative to be renewed.

“The Sustainable Car program was an important driver of light vehicle demand in the country,” he said, noting that it resulted in 282,000 vehicle registrations, 22% more than before the program existed. “But I don’t believe it will be extended because it is anchored in the IPI, and the IPI has an end date, as tax reform will take effect from 2027,” he added.

As for the Move Brasil program, which offers credit lines for truck purchases, Calvet said the sector is waiting to see its impact in the coming months. “We expect the results to start showing up in February and March. The program has all the conditions to be a success,” he said.

Source: Elaine Patrícia Cruz, reporter at Agência Brasil

With capacity for up to 7,000 vehicles, the operation drew attention not only for its scale but also because both the cargo and the ship belong to BYD itself, a strategy increasingly used by the company to gain tighter control over its international supply chain.

The vessel, named Changzhou, is part of BYD’s in-house fleet, which currently comprises eight car carriers purpose-built for vehicle transport. Launched in 2024, the ship is about 200 meters long, sails under the Liberian flag and is operated by a crew of 21, led by a Russian captain.

According to the company, Changzhou is equipped with a dual-fuel propulsion system, running on liquefied natural gas and conventional marine fuel. BYD plans to add seven more vessels to its fleet over the coming years as part of a global strategy to strengthen its proprietary logistics in the international vehicle trade.

The vessel

Vehicles are stowed across 13 decks connected by internal ramps, enabling roll-on/roll-off operations. Each unit is individually secured to the steel deck, with minimal spacing to prevent movement during the voyage. Unloading at Zárate proceeded at an average pace of about 150 vehicles per hour.

Despite its size, the vessel operates with a high level of automation and advanced digital systems on the bridge, reflecting the profile of a new-generation car carrier. On the outer decks, mannequins positioned at strategic points are used as a deterrent against potential piracy attempts on international routes.

The Changzhou departed from China and completed the final leg of its journey from Singapore, crossing the Indian Ocean in roughly 23 days before reaching the Río de la Plata estuary.

The shipment

The shipment included electric and hybrid models already sold by BYD in Argentina, as well as units of a new compact hybrid SUV the company plans to launch in the country in the coming weeks. The call at Zárate also signals an expansion of BYD’s local lineup, with additional models expected to enter the Argentine market in 2026.

For maritime and foreign trade specialists, the operation underscores the growing presence of Chinese automakers in the regional automotive market and highlights the strategic role of dedicated ocean car carriers in reducing costs, improving predictability and supporting large-scale import flows into South America.

Source: Clarín