Story perspectives

Brazil Ends Tariff Exemption, Hits BYD and Great Wall Motors

2/5/2026

Summary

Story summary

The temporary tariff exemption for electric and hybrid vehicles assembled with imported parts from China expired on January 31.
BYD, the Chinese carmaker, and Great Wall Motors will face higher import taxes, with SKD kits at 35% and CKD kits rising.
The reversal ends the August incentive to attract manufacturers to the Brazilian market, including BYD's manufacturing launch, and triggers tensions among the government, BYD, and Brazil's automotive industry.

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Story summary

The temporary tariff exemption for electric and hybrid vehicles assembled with imported parts from China expired on January 31.
BYD, the Chinese carmaker, and Great Wall Motors will face higher import taxes, with SKD kits at 35% and CKD kits rising.
The reversal ends the August incentive to attract manufacturers to the Brazilian market, including BYD's manufacturing launch, and triggers tensions among the government, BYD, and Brazil's automotive industry.