SAO PAULO, Brazil: Amid a surge in electric vehicle (EV) adoption and growing competition in Brazil, Chinese automaker GAC has officially launched sales in the country and announced plans to build a local factory by the end of 2026.

The company will begin its operations in Brazil on May 31 with four imported electric vehicles and one hybrid model. It expects to sell 100,000 units over the next five years, GAC International President Wei Haigang told reporters in Sao Paulo.

"Brazil is a huge country and very important to us," Wei said in Chinese, speaking through a Portuguese interpreter. He emphasized the company's "long-term" strategy for the South American market.

GAC's entry comes as Brazil—now the world's sixth-largest automotive market—experiences a sharp rise in electrified vehicle sales. According to local industry group Fenabrave, sales of hybrid and electric cars grew by 37.4 percent year-on-year in the first four months of 2025, reaching 70,450 units. In comparison, overall light vehicle sales rose just 3.4 percent to 714,800 units.

GAC had previously announced a 6 billion reais (US$1.06 billion) investment plan for Brazil, to be deployed over five years. The company is currently in discussions with local partners and aims to begin factory construction in Q4 2026.

"We are aware that Brazil is an increasingly competitive market," Wei said, acknowledging the presence of other Chinese automakers such as BYD, Chery, and GWM, all of which have established operations in Brazil in recent years.

Despite the backdrop of global trade tensions, including tariffs and restrictions triggered by U.S. President Donald Trump's policies, Wei said that GAC's Brazil plans remain unaffected.

"External influences" such as the U.S.-China trade war "did not weigh on GAC's plans in Brazil," he noted. "We developed our strategy with the bilateral relationship between Brazil and China in mind."

GAC's move underscores China's growing presence in Latin America's EV market, where demand is rising, and governments are increasingly pushing for clean energy solutions.