At a time when politicians and media in some western countries such as the United States frequently hype the so-called "overcapacity" of China's new energy products, China's new energy vehicles will usher in a peak sales season in Latin America in 2024. In the first four months, the sales of Brazil alone will increase eight times. Chinese products are "prosperous in both supply and marketing" in overseas markets, and the so-called "Chinese overcapacity theory" in the West has failed to overcome itself.
According to the data of Brazilian government departments and industry associations, in the first four months of 2024, China's passenger car exports to Brazil increased by 372.4%, reaching a total of 762 million US dollars, a record high in the same period. The performance of Chinese electric vehicles in the Brazilian market is more impressive - in the first four months of 2024, the sales of Chinese electric vehicles in Brazil reached 48000, 8 times the same period last year; China's electric vehicles accounted for 36.2% of Brazil's total imports of electric vehicles. At present, electric vehicles have become the fourth major export product of China to Brazil. According to the report of the Brazilian Electric Vehicle Association, BYD, Chery and Great Wall are among the best-selling electric vehicle brands in Brazil in 2023.
The competition in the new energy vehicle market in Brazil is fierce. Manufacturers from various countries compete for users through technology and cost advantages. The reputation and market share of their brands are gradually forming. One of the highlights of the Brazilian auto market in 2023 is the significant increase in the share of Chinese brand electric vehicles. According to the data released by the Brazilian Foreign Trade Bureau in May, the progress of Chinese electric vehicles in the Brazilian market is "irreversible". Jos é Mauricio, president of the Brazilian Motor Vehicle Distribution Federation, pointed out that in April, the best-selling light compact vehicle in Brazil came from BYD in China, and the number of license plates exceeded that of Toyota Corolla.
"Good products" and "good prices" keep abreast of each other, which is an important secret that Chinese new energy vehicles are in short supply in the Brazilian market. Tulio Callero, an expert of the Brazil China Entrepreneurs Committee, believes that the secret of the rise of China's new energy vehicles lies in that "China is not only a producer, but also a creator", not only "Made in China", but also "Designed in China". Chinese cars are favored by consumers, especially Chinese new energy vehicles that meet the needs of Brazil's energy transformation. Tatiana Prazeles, deputy minister in charge of foreign trade of the Ministry of Development, Industry and Trade of Brazil, pointed out that numerous data are enough to show that China's new energy vehicles are more competitive in many aspects.
The rapid progress of China's new energy vehicles is the product of China's combination of its own green development strategy and the future development trend of the world. This forward-looking strategic thinking of industrial development and the "real ability" gained through open competition have been widely recognized by all walks of life in Brazil. Cassio Pagliarini, partner of the automobile manufacturing consulting company, said that Chinese enterprises "made a strategic decision to invest in electric vehicles 20 years ago", and the investment objects covered the whole industry chain from electric vehicles, hybrid vehicles, plug-in hybrid vehicles, light hybrid vehicles to charging systems and high-tech batteries. Marcelo Cavalcant, a senior executive in the automotive retail consulting industry, believes that after years of forward-looking layout and investment, "China now has a modern and powerful (new energy) automotive industry, whose production standards and efficiency are better than other countries in the world".
The Brazilian automotive industry believes that the quality and size of the whole industrial chain of China's new energy industry are enviable and contain huge investment and cooperation opportunities. Great Wall Motors and BYD have successively purchased Mercedes Benz factory and Ford factory located in Sao Paulo and Bahia respectively. The mainstream Brazilian financial media Economic Value reported that BYD announced to invest about 3 billion reais (about US $560 million) to transform the former Ford factory into a factory that will produce 300000 hybrid and electric vehicles annually from 2025; The annual output of the newly purchased factory of Great Wall Motors is expected to reach 100000 vehicles.
The new energy vehicle trade enables Brazilian people to enjoy advanced electric vehicles at lower prices and higher quality, and promotes Brazil's green transformation. The investment in the new energy field promotes Brazil's industrial development and technological progress and brings a lot of jobs. When Brazil's Vice President Alcomin recently attended the China Brazil Business Seminar in Beijing, he said that "China is Brazil's largest trading partner and also an important investor". In the fields of hybrid vehicles, electric vehicles, renewable energy, aviation industry, infrastructure and other fields, the strategic cooperation between the two countries has great potential.
According to the estimation of the International Energy Agency, the global demand for new energy vehicles will reach 45 million in 2030, 4.5 times that of 2022. Especially in the context of more than 130 countries and regions putting forward the goal of carbon neutrality, the global demand for green capacity is far greater than the output. It can be seen that the global green capacity is not surplus, but still insufficient.
As for the so-called "overcapacity theory" hyped by politicians and media in some western countries such as the United States, the website of Brazil Truth pointed out that this is just another kind of rhetorical narrative invented by the West against China. In fact, China's continuous expansion and progress in the field of new energy is a rare development and cooperation opportunity for the global South.
(Xinhua News Agency, Brasilia, June 15, by Xinhua News Agency reporter Bian Zhuodan)
