Brazils official trade data shows a sharp shift in the countrys car market.
In the first half of 2025, Brazil imported $2.7 billion worth of electric and hybrid cars, down from $3.4 billion in the same period last year.The number of imported vehicles also fell, dropping 4.7 percent to 141,884 units.
This decline follows the governments decision to bring back import taxes on electric and hybrid cars.These taxes, which had been zero since 2015, now range from 10 to 25 percent and will reach 35 percent by mid-2026.The government says the tax break cost Brazil about 6 billion reais, or $1.1 billion, in lost revenue each year.
Electric car imports took the hardest hit, falling nearly 58 percent in value.Hybrid cars, however, rose slightly and now make up most of the imports, with 103,800 units in the first half of 2025a 29 percent increase from last year.Fully electric cars dropped to 38,067 units as higher prices discouraged buyers.China now supplies over 62 percent of these imported vehicles, sending 134,582 cars to Brazil so far this year.Chinese brands like BYD have taken a huge share of the market, with BYD alone holding about 90 percent of electric car sales by April 2025.Brazils Electric Car Imports Shrink as Tariffs Rise and China Tightens Its GripThe company is building a factory in Bahia, but most cars still arrive from China.Brazilian carmakers pushed for the return of tariffs, arguing that cheap imports threatened local jobs and investment.The government responded by raising taxes and setting quotas.
As a result, local car production is rising again, up 20 percent in April 2025.This story matters because it shows how Brazil is trying to protect its own industry while facing strong competition from China.The new taxes make electric cars less affordable for many people, but they also push companies to invest in making cars in Brazil.The outcome will affect jobs, prices, and how quickly Brazil can switch to cleaner vehicles.
All figures come from official government and industry sources.