Brazil has also been pursuing policies to strengthen its domestic automotive industry. Its Green Mobility and Innovation Program, known as Mover, encourages investment and technological innovation.

　　Against this broader backdrop, Chinese automakers are expanding their local manufacturing presence. In June, BYD began testing the welding, assembly and calibration of dashboard crossbeams at its plant in Camacari, in northeastern Brazil's Bahia state, replacing a process in which the parts previously arrived fully assembled, according to the state government. BYD aims to produce or source more than half of its vehicle components locally in Brazil by January 2027.

　　By September, the plant had more than 8,000 direct employees, making BYD the second-largest industrial employer in Bahia state, according to the company.

　　Great Wall Motor (GWM) is also expanding its manufacturing operations in Brazil. In August, the company said its plant in Iracemapolis, Sao Paulo state, had produced more than 15,000 vehicles in the first eight months of 2026 and employed over 1,800 workers. The automaker is also working with Brazilian suppliers to increase the use of locally made components.

　　Beyond local manufacturing, Chinese automakers are also adapting their technologies to Brazil's unique energy landscape, where ethanol is widely used as an automotive fuel.

　　BYD brought together more than 100 Chinese and Brazilian engineers who spent two years developing a plug-in hybrid system compatible with both gasoline and ethanol. The technology is used in BYD's Song Pro, a plug-in hybrid SUV launched in Brazil in August. The model can run on gasoline or ethanol.