Here, "Chinese companies are quietly seizing the position of the three giants"

 In Brazil, Chinese companies are quietly seizing the position of the Big Three. "According to a report by Nikkei Asia on May 11, the share of Chinese electric vehicles has soared in Brazil, shaking the dominant positions of Fiat, General Motors and Volkswagen.

      BYD, Chery and Great Wall are reportedly eyeing Latin America as Western countries create trade barriers. Sales of Chinese cars in Brazil, for example, have grown eightfold this year compared to the same period last year, driven by demand for affordable electric cars and plug-in hybrids, weakening Western automakers' grip on the local market.

      According to data from the Brazilian Fenabrave Dealers Association, total sales of passenger cars and light commercial vehicles in Brazil in April were 208,000 units, a year-on-year increase of 37%. Among them, Fiat, Volkswagen and General Motors accounted for the top three in the market, with a total share of 50% .

      But Chinese automakers have been quietly wresting control of the Big Three. In April, Chinese companies BYD, Chery and Great Wall Motors captured a total of 7% market share in Brazil. In the first four months of this year, Chinese automakers sold 48,000 new cars in Brazil, eight times the number in the same period last year, and their market share has also begun to rise from less than 3% last year.

      According to Japanese media, in Brazil, flexible fuel vehicles using a mixture of gasoline and ethanol account for the majority of car purchases. Ethanol is a renewable fuel that can be made from sugar cane and other plant materials. Chinese automakers are using their expertise in making electric cars, plug-in hybrids and other related vehicles to make inroads in the Brazilian market.

        Overall sales of electric, plug-in and hybrid vehicles in the country rose 91% last year to an all-time high of about 94,000 vehicles, according to the Brazilian Electric Vehicle Association. Among the top five sales of this type of cars, BYD, Chery and Great Wall Motors occupy three seats.

        Japanese media also noted that Japan's Toyota Motor and Honda Motor have been investing in Brazil, hoping to expand market share, but the rise of Chinese electric car manufacturers may hinder their goals. Last year, Toyota and Honda ranked fifth and seventh respectively in market share.

        Antonio Martins, an automotive industry expert at the Getulio Vargas Foundation, a well-known Brazilian think tank, said, “Latin America is at the dawn of the era of electric vehicles. Consumers feel the novelty of advanced technology, and the middle class Electric vehicles are being purchased, and part of that has to do with affordability.”

         It is worth mentioning that last year, China surpassed Japan and became the world's largest automobile exporter. As China strives to expand automobile exports, Latin America has become one of its destinations. In the first quarter of this year, Brazil was the fourth largest importer of Chinese cars in U.S. dollar terms, with Mexico in fifth place.

         Japanese media claimed that Chinese companies have shifted their focus to Latin America and believed that this was related to the obstacles set up by Western markets. At the same time, most Latin American countries are deepening economic ties with China, including Brazil, which has a population of 200 million. On the other hand, Brazil is also working hard to attract the automobile industry and create a wide range of job opportunities.

         Chinese automakers are preparing to increase production capacity in Brazil in response to Brazilian incentives. According to reports, in March, BYD announced plans to almost double its investment in local factories to 5.5 billion reais (approximately RMB 7.7 billion). This is Brazil's first electric vehicle factory, which will be operational as early as the end of this year and is expected to eventually produce 300,000 vehicles per year. In addition, BYD plans to double the number of dealers in Brazil to 200 this year.