GAC Launches Electric Vehicles, Plans Brazil Factory by 2026

Chinese automaker GAC has officially launched its lineup of hybrid and electric vehicles in Brazil, unveiling five core models tailored to diverse mobility needs under its global "One GAC 2.0" strategy. The company plans to invest 6 billion reais ($1.06 billion) over five years and aims to establish a local manufacturing facility by late 2026, contingent on market acceptance, with a sales target of 100,000 units within five years. This move comes amid rapid growth in Brazil's electric vehicle market, which saw a 37.4% year-on-year sales increase in early 2025, outpacing the modest 3.4% rise in overall light vehicle sales. GAC's strategy emphasizes leveraging the strong bilateral relationship between Brazil and China despite external challenges like U.S.-China trade tensions. The automaker has also signed a strategic cooperation agreement with Brazil's Instituto Nacional de Metrologia, Qualidade e Tecnologia (Inmetro) to enhance the automotive industry's competitiveness. GAC's entry signals intensifying competition in Brazil's expanding electric vehicle sector, where other Chinese companies such as BYD, Chery, and GWM are also active.