Brazil has enjoyed a long history of trading with Chinese companies, and the market looks set for a resurgence of Chinese automakers on Brazilian soil. The global financial crisis led many of these manufacturers to exit the country following initial forays in the late 2000s, but things are starting to look brighter. The likes of Chery and Great Wall Motor (GWM) are carving out positions today as big names like Ford and Mercedes-Benz withdraw. More Chinese brands could join.
Like other BRICS nations Russia and India, Brazil has been a challenging market for global automakers. Political instability, economic volatility and cost sensitive consumers has meant that periods of growth are often short-lived. Add in the impact of COVID-19 and the exit of western automakers is understandable. But does this shake-up create an opening for Chinese-made models to pick up the slack?
Household names are out the door
Ford has been
