BEIJING (Reuters) – Brazil has overtaken Belgium as the largest export market for Chinese electric and hybrid vehicles, industry data showed, amid rising sales in non-EU markets and as The European Commission is investigating subsidies on imports from China.

Exports of electric and plug-in hybrid cars to Brazil increased 13-fold year-on-year to 40,163 units in April, making it the largest export market for the second consecutive month, according to Association data Chinese Passenger Car Company (CPCA).

The sharp rise in exports to Brazil, which in January was only China’s tenth market, comes as the United States and the European Union prepare to increase customs duties on Chinese vehicles.

Several Chinese automakers have already begun to step up their investments in Brazil, with BYD having started construction of a manufacturing site due to begin operations in 2025, while Great Wall Motor said its Brazilian factory would begin operations this month .

In April, Brazil also became the second largest importer of Chinese cars, all engines combined. Russia is expected to remain China’s largest car export market, CPCA Secretary-General Cui Dongshu said.

Some of the biggest declines in Chinese electric car imports were recorded in Spain, France, the Netherlands and Norway, according to CPCA data.

Chinese automakers are also looking to strengthen their presence in South America, Australia and member countries of the Association of Southeast Asian Nations, Cui Dongshu said.

In the first four months of this year, Chinese automobile exports to Russia increased by 23 percent to 268,779 vehicles. Over the same period, exports to Mexico and Brazil jumped 27% and 536% respectively, to 148,705 and 106,448 vehicles.

(Reporting by Qiaoyi Li, Zhang Yan and Kevin Krolicki; by Augustin Turpin, editing by Kate Entringer)

Copyright © 2024 Thomson Reuters