Due to their competitive pricing and broad consumer appeal, Chinese automakers have also become targets of pushback from traditional manufacturers. Accused of dumping—selling vehicles below cost to undercut competitors—BYD and GWM are facing formal complaints from the National Association of Motor Vehicle Manufacturers (Anfavea).

In January, then-president of Anfavea, Márcio de Lima Leite, stated in a press release that the organization supports free competition, but that the legal action aims to prevent practices that could harm Brazil’s automotive market.

Even Ford’s CEO, Jim Farley, addressed the issue at the Aspen conference in June, warning that the company is in a "fight for survival." Ironically, BYD’s factory in Bahia previously belonged to Ford.

“We are in a global competition with China [...] It’s not just about electric vehicles. If we lose this race, there’s no future for Ford,” Farley said.

Like BYD, GWM is forging partnerships to build out its logistics operations in Brazil. While the company’s factory is still under development, the automaker has been importing vehicles by ship, which docks periodically in Espírito Santo. There, it has partnered with the state government, which is actively working to expand its industrial real estate market—currently totaling 554,000 square meters with zero vacancy.

“Our commitment is to regional development and building a solid and sustainable operation in the country. Espírito Santo is already a strategic partner in our current logistics network and could become even more relevant as we move toward local production and exports,” said Andy Zhang, president of GWM Brazil & Mexico, during a meeting with the state governor in early July.

Meanwhile, BYD—already a favorite among Brazilian consumers—is investing R$ 5.5 billion in its new factory in Bahia. The company’s goal goes beyond producing vehicles for the domestic market: it aims to turn the city of Camaçari, home to 300,000 residents, into an export hub for the Americas and a logistics center for the brand. For now, the local footprint is still modest at 54,000 square meters, but a major logistics complex is planned for 2030, adding another 227,000 square meters to the region.

Geely, the parent company of Volvo Cars, is also importing vehicles into the country. Through different strategies, these automakers are gradually establishing a presence in major cities, forming public-private partnerships to drive infrastructure investments—and steadily winning over Brazilian consumers.