Sunita Somvanshi
Chinese automaker GAC Motors launched operations in Brazil on May 23, 2025, introducing five electric and hybrid vehicles at an event in São Paulo’s Distrito Anhembi. The company detailed its “Brazil Action Plan” as the first major implementation of its “One GAC 2.0” global strategy in Latin America.
The Vehicle Lineup
GAC brought these models to Brazilian consumers:
- AION V: Electric SUV designed for global markets
- AION Y: Compact electric SUV for city driving
- HYPTEC HT: Luxury-focused electric SUV
- GS4 HEV: Hybrid SUV offering over 1,000 km combined range
- AION ES: Electric sedan targeting ride-hailing platforms
The company now operates 33 dealerships across Brazil, with coverage in 95% of major urban centers. Brazilian musician Gilberto Gil took ownership of the first GAC vehicle in the country.
Financial Commitment
GAC has committed R$6 billion ($1.06 billion) for its Brazilian operations over five years. The company aims to start construction of a local manufacturing plant by late 2026, provided the market responds favorably.
Wei Haigang, President of GAC International, expects sales to reach 100,000 units in Brazil within five years. “Brazil is a huge country and very important to us,” Wei said, describing the company’s approach as “long-term.”
Industry Partnerships
GAC signed a cooperation agreement with Instituto Nacional de Metrologia, Qualidade e Tecnologia (Inmetro) to help develop Brazil’s automotive standards. The automaker also established R&D partnerships with Brazilian universities—Unicamp, UFSC, and UFSM—focusing on flexible-fuel technologies and local talent development.
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Market Conditions
GAC enters a competitive landscape where Chinese brands BYD, Chery, and GWM have already established presence. Brazil’s electrified vehicle segment grew 37.4% year-on-year in the first four months of 2025, reaching 70,450 units, while overall light vehicle sales increased just 3.4% to 714,800 units during the same period.
Wei noted that U.S.-China trade tensions did not influence GAC’s Brazil strategy: “We developed our strategy with the bilateral relationship between Brazil and China in mind.”
Strategic Framework
The Brazil Action Plan consists of:
- Full industrial chain deployment – Including a parts distribution center opening in early 2025
- Energy infrastructure – Creating a national charging network by 2030
- Academic collaboration – Developing local R&D capabilities
- Community integration – Including providing electric vehicles for COP30 in Belém, Pará
GAC has joined the Brazilian Sustainable Mobility Alliance and will offer service standards including 24/7 customer support and roadside assistance. The company has partnered with Santander Bank to provide financing options for Brazilian consumers.
The strategy aligns with Brazil’s “Mover” initiative that incentivizes green technology development in the automotive sector.
