Chinese EVs dominate emerging markets like Brazil and Thailand

Chinese electric vehicles (EVs), such as those made by Great Wall, BYD, Chery, and SAIC, are becoming very popular in emerging markets. A recent report from Bloomberg highlights that while countries like the U.S., Canada, and the EU are imposing tariffs to protect their own carmakers, many developing nations are welcoming Chinese cars. Cities like Bangkok, Johannesburg, and São Paulo are seeing a surge in these stylish and affordable vehicles. In 2024, China exported 4.9 million passenger cars, a significant increase from less than 1 million in 2020, according to the China Association of Automobile Manufacturers. Abby Chun Tu from S&P Global Mobility noted that Chinese automakers are offering high-quality vehicles at competitive prices. Their cars also come with modern software and attractive features, even at lower price points compared to competitors. Despite fears of a Chinese EV takeover in the U.S. and Europe, most Chinese exports are still gas-powered. Many countries lack the necessary charging infrastructure for electric vehicles. Forecasts suggest that China's share of the global auto market could grow from 3% today to 13% by 2030, with an even larger impact in Africa and the Middle East. Ford’s CEO, Jim Farley, recognized the challenges posed by Chinese automakers, especially in markets like India and South America. Ford has exited Brazil, allowing BYD to take over its plant, but they plan to maintain their presence in South Africa and Thailand. General Motors and Stellantis see Chinese brands as a threat but are also collaborating with them to remain competitive. Marketing and low prices help Chinese brands gain traction. In Brazil, for example, BYD featured famous footballer Pelé in their ads to attract customers. Tax incentives have also supported Chinese car manufacturers building factories in Brazil. In Thailand, Chinese brands now hold 13.3% of the car market and 71% of EV sales. As Japanese brands reduce their presence, Chinese competitors are stepping in. At a recent motor expo in Bangkok, a long-time Toyota and Honda driver showed interest in trying a BYD hybrid, seeing it as a new and affordable option.