The measure will also include brands that sell trucks, buses and agricultural and road machinery.
The Brazilian vehicle industry is considering filing an anti-dumping request against Chinese manufacturers, which have relied on imports to establish themselves in the country.
"Market studies are underway," said Marcio de Lima Leite, president of the association of vehicle manufacturers, Anfavea, in a statement.
The executive responded to questions about an article in the newspaper O Estado de S.Paulo on Monday, which states that "the oldest manufacturers with factories in Brazil will present, in the next few days, a request for an investigation into dumping against Chinese companies that are marketing imported vehicles in the country."
According to the newspaper, "the main target is cars, but brands that sell trucks, buses and agricultural and road machinery will also be included."
An anti-dumping process occurs, according to the Ministry of Foreign Affairs, against one or more companies that "export a product at a price lower than the price normally charged in their domestic market." Following an investigation by the country that is the target of the dumping, it is determined whether the practice is causing "material damage" in the importing country. The measure is usually taken by unilaterally applying a surcharge on imports of products from the companies that are the target of the investigation.
Brazil's vehicle sector closed 2024 with sales of 14.2 million new and used light commercial vehicles, the highest volume ever recorded in the country, according to data released by Anfavea mid-month, when it said that the Brazilian new vehicle market's growth last year, at 14.1%, marked the best performance among major global vehicle markets, well above the world average of 2%.
Anfavea did not confirm whether an antidumping request will be submitted in the coming days to the Ministry of Development, Industry, Trade and Services, but stated that it "defends free competition and the prevention of practices that harm the Brazilian automotive market, looking out for customers, employees, dealers, manufacturers and the auto parts industry."
The main references currently among Chinese vehicle brands in Brazil are the electric and hybrid vehicle manufacturers BYD and GWM, which are building local factories in Bahia and São Paulo, respectively, while marketing finished models produced in China.
When questioned, GWM said in a statement that it "views the action with peace of mind, as it strictly follows international rules and Brazilian legislation for foreign trade."
According to GWM, "the company is increasing the pace of hiring in Brazil with the aim of starting production of its first electrified cars at the Iracemápolis factory in the interior of São Paulo, scheduled for the first half of this year."
The MDIC said in a statement that, so far, the Secretariat of Foreign Trade (Secex) has not received any request related to the issue.
"With regard to administrative procedures for investigating antidumping practices, the ministry clarified that investigations are initiated and conducted by Secex; and that any application of measures is always preceded by a deliberation by the Executive Management Committee (Gecex), an inter-ministerial body," it added.
BYD representatives did not immediately comment on the matter.
According to data from the Brazilian vehicle dealers federation, Fenabrave, BYD ended December among the top ten light vehicle brands in the country, with a 4.14% share of total sales in the domestic market, ahead of Honda and Nissan, and practically tied with Jeep, from the Stellantis group. In the year-to-date, the Chinese company occupied the last place among the top ten brands, with 3.1% of the market.
But, considering only electric and hybrid vehicles, BYD and GWM led the Brazilian market clearly, according to Fenabrave data: BYD sold 76.8 thousand cars and light commercial vehicles in Brazil in 2024, and GWM 29.2 thousand units, compared to 20.3 thousand hybrids from Toyota and 8.6 thousand units from Volvo Car, a subsidiary of the Chinese Geely.
