A Chinese automaker will manufacture in Brazil and worries Argentine terminals

Cherry It was the first, with the help of the Socma Group of Franco Macrito begin selling in the country and, with patience, became the brand that headed, for some time, the ranking of imports from non-established companies.

Later they arrived Geely, BAIC, Great Wall, Lifan, JAC, Photonamong others. Something similar happened in Brazilwhere the presence of companies from the other side of the world is increasing their presence.

Until a while ago, it was only about the import business which, for the classic terminals – in Argentina and Brazil – was not worrying. The bilateral automotive regime has enough obstacles to prevent these brands from growing to threatening levels.

The problem is that in the neighboring country an industrialization process is already underway that puts multinationals from the United States, Europe and Japan in check.

So much so that I entered the associated companies in ADEFA –the entity that brings together vehicle factories based in Argentina– there is concern about the not-so-distant future because of what may happen with the Chinese advance in the region.

In conversations with more than one executive from the local terminals, it is clear that the “Chinese phenomenon” It ceased to be a marginal issue and they venture an unexpected competition no more than two or three years from now. For the times that automotive companies manage, it is today.

Regarding the expansion of Chinese brands, the president of Toyota Argentina, Gustavo Salinas, He pointed out that “that is the challenge for Argentina and the world for 2025. It is one of the great issues. We are seeing what is happening in the United States. Now with Trump even more so. In Europe, the barriers that are being placed on Chinese vehicles. And like water looks for where to drain and where to arrive, we saw this year in Brazil how those videos arrived with ships with thousands of Chinese vehicles. Global competition with China is a reality.

After landing in the neighboring country, Chinese automotive companies bet on their industrial development. One is the case of BYD (Build Your Dreams), a leader in the sector, which plans to start producing vehicles in Brazil starting in March 2025, as confirmed by the Brazilian government.

The president Luiz Inácio Lula da Silva met on Monday with the executive vice president of BYD, Stella Li, who stated after the meeting that the vehicle production plant in Brazil “will be the largest and most advanced” outside of China, where they have their headquarters and most of their manufacturing.

It is expected that by the end of 2025 the Brazilian production plant will create 150,000 vehicles intended to supply mainly the South American markets, and by 2026 this figure should increase to 300,000, according to the EFE Agency.

In addition, the government reported that this investment is projected to create 10,000 direct jobs by 2025 and 20,000 by the end of 2026.

The executive also announced that the company will begin producing its first flexible hybrid system (with electric motor, gasoline and ethanol) in its factory located in the Camaçari Industrial Center in the state of Bahia. The project was developed by 110 Chinese and Brazilian engineers.

The Chinese company’s factory located in Bahia is still under construction and will begin operating in January next year, according to the state government.