“We used to look down on Chinese brands... but now, they are super good”
2024-08-27
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AFP reported on August 24, original title: Chinese cars expand into Latin America
Two years ago, Chilean truck driver Claudio Perez was skeptical when he first bought a Chinese-made family sedan. But the price and fast delivery convinced him, and now his mind has completely changed. Perez, 47, is one of millions of car buyers in Latin America who have switched from cars made in the United States and Brazil to Chinese vehicles in recent years.
The Asian economic giant sold $2.2 billion worth of cars in the region in 2019. Last year, that figure reached $8.5 billion, according to the International Trade Centre, a UN agency. By value, Chinese cars now account for 20% of total auto sales in the region, ahead of the United States at 17% and Brazil at 11%. Chinese cars currently have a smaller share in Latin America than anywhere else outside of Asia, according to the International Trade Centre.
“We used to look down on Chinese brands before…but this car is super, super. I don’t regret buying it,” Perez said of his first Chinese car purchase. He said his next car will also be made in China.
Analysts say Chinese automakers have redoubled their efforts in recent years to offer price-competitive products without compromising quality. In the emerging electric vehicle market, Chinese cars have an even larger share in Latin America, accounting for 51% of all sales. Almost all electric buses in the region are made in China. "Chinese automakers have achieved exponential growth in recent years, thanks to significant improvements in quality, technology and design," said Andres Polverijani of Nyvus, a consultancy that studies automotive competitiveness.
Unlike Latin America, where the US and Europe have their own auto industries and have used protective import tariffs to slow the entry of Chinese cars, in Chile, where tariffs are almost zero, Chinese models accounted for nearly 30% of auto sales last year. Chinese companies are also expanding aggressively in Mexico and Brazil, Latin America's major auto producers. For example, Chinese auto giant BYD is building its largest electric vehicle factory outside of Asia in northeastern Brazil, with an annual production target of 150,000 vehicles.
Sebastian Herreros, an economist at the Economic Commission for Latin America and the Caribbean, said that in Latin America, the arrival of Chinese cars has enabled low- and middle-income people to buy their first car. Chinese cars are often more cost-effective than their competitors. This has also enabled heavily polluted Latin American metropolises such as Santiago, Bogota and Mexico City to adopt cleaner engine technology.
"All of our countries must adopt electric mobility as quickly as possible. It's almost a matter of survival," Herreros said. "China is an ideal partner - it has the necessary production capacity and offers competitive prices." (Author Paulina Abramovich, translated by Chen Junan)
