July of this year, the Brazilian government raised import tax rates for complete vehicles and SKD to 35%, and CKD tax rates will also rise to 35% in 2027. From 10 years ago, when the import tax was reduced to 0% to cultivate the new energy vehicle market, to now restoring tax rates stepwise, Brazil's guidance policy for new energy vehicles has shifted from "cultivating the consumer market" to "attracting local production".

At the same time, Chinese car exports exceeded 6.39 million units from January to July of this year. New energy vehicle exports in July grew 1.5 times year-on-year, accounting for over half for the first time. When Chinese automobiles are rushing overseas at an unprecedented speed, host countries are no longer concerned only about import quantities, but what value Chinese cars can bring to local industries and societies.

At the Global New Energy Vehicle Cooperation Development Forum (GNEV2026), Former Vice Minister of the Ministry of Commerce Jiang Yaoping pointed out that Chinese car overseas expansion has shifted from traditional product exports to being dominated by new energy and intelligent models, and has begun to enter emerging markets and traditional automotive powerhouses.

When we no longer question whether Chinese automobiles possess sufficient competitiveness in the domestic market, the problems faced by Chinese car overseas expansion are also undergoing fundamental changes: from just answering whether products can go out and sell well to now thinking about how to integrate into local social and economic operating systems, and truly keep technology, supply chains, manufacturing, and services locally.

01

The Focus of Going Global Has Truly Changed

Chief Expert at Auto Century International Zhang Yongwei summarized overseas markets' reactions to Chinese car overseas expansion into three categories: one category delays Chinese enterprise entry through restrictive measures; one category sees Chinese automotive rise as an opportunity to undertake capacity and attract factory building; and another category wants cooperation but fears being surpassed, having practical needs but also risk concerns.

Brazil is exactly a microcosm of this complex mindset.

On one hand, President Lula personally attended the Great Wall Motor factory production ceremony; on the other hand, the Brazilian National Association of Automobile Manufacturers (Anfavea) publicly opposed extending the KD tax exemption policy. Its Chairman Igor Calvet believes that if staying at the level of imports and simple assembly, it is difficult for other local manufacturers to participate in competition at the same cost.

As more and more destination countries for going global begin to require that Chinese automakers' market share grow synchronously with local value, for the Chinese automotive industry, how to reduce such concerns and achieve benefit sharing has become more important than sales figures themselves.

Voice from the government level first set the tone. Liu Jiafeng, Member of the Party Group of Shanghai Jiading District People's Government and Deputy District Mayor, proposed the development concept of "In China, For the Global", emphasizing that Chinese automotive globalization is not an outward expansion of a closed system, but should be based on two-way opening and industrial synergy.

Jiang Yaoping summarized the new cooperation path as "Co-construction, Mutual Recognition, Mutual Gain": Chinese automakers must move from product overseas expansion to ecological co-construction, from adapting to rules to mutual recognition of standards, and from one-way output to two-way empowerment. He believes that the competitiveness of Chinese automobiles comes from mass manufacturing, a complete supply chain, and rapid iteration, and cannot be simply equated to overcapacity; but enterprises must also shift from "selling products" to "building brands, optimizing services, building ecosystems" to turn advantages into capabilities long-term accepted by overseas markets.

This also aligns with "Chinese Opportunities for Global Automobiles 2.0" mentioned by Zhang Yongwei.

In Phase 1.0, China opened its market and introduced multinational automakers, becoming a global automobile manufacturing base; in Phase 2.0, China must continue to attract global resources, while also taking the already formed new energy and intelligent supply chains, rapid product development, and manufacturing capabilities overseas, shifting from passively integrating into the world to actively participating in global resource allocation. And China's technical and industrial "resource pools" accumulated in the field of new energy and intelligence are exactly the basis for Chinese automakers to carry out global collaboration.

Some Chinese automakers have already tried utilizing existing local capacity. BYD Brazil Camaçari factory park assets came from Ford's exit; Great Wall took over General Motors and Daimler factories in Rayong, Thailand and Iraçema, Brazil respectively; Chery has also just completed the acquisition of Nissan's South Africa production base.

This is also what Zhang Yongwei mentioned: Chinese automakers' overseas expansion can utilize existing and idle overseas capacity, drive Chinese parts companies to go out together, and can also leverage the existing global network of multinational suppliers to help local factories and suppliers complete electrification and intelligence upgrades.

02

What is True "Localization"?

Chery, which has long ranked first in Chinese car exports, Vice President Wang Lang explained localization as moving from product overseas expansion to local symbiosis: "Not only go out, but also go in, go up, and take root." This means entering local users, channels, and industrial ecosystems to form stable organizations, services, supply chains, and governance systems.

In Wang Lang's view, true globalization does not lie in how many countries are entered, but whether it can continuously improve user value, deepen industrial integration, and establish business models that can be operated long-term.

To achieve this goal, it requires improving global resource allocation capabilities, not simply increasing parts localization rates, or completely copying domestic factories, organizations, and industrial chains overseas.

Specifically, capabilities directly affecting product compliance, delivery, and user experience should be built locally according to market conditions; warehousing, logistics, spare parts, certification, and talent training can be shared within the region; core platforms, brand standards, capital discipline, and major risk boundaries require global coordination.

Changan Automobile Vice President Di Zhirui pointed out taking Changan Automobile's Rayong base in Thailand as an example that producing locally is not just to reduce tariffs, the greater significance is to create jobs, guarantee after-sales, and let the local supply chain gain value, achieving sustainable development.

To this end, Changan built local teams synchronously from the beginning of planning, gradually increased parts localization rates, cultivated supporting clusters within 300 kilometers around, and ensured every sales terminal had service capability support.

Great Wall Motor Technology Center Deputy General Manager Zhu Yongqing showed global synergy at the product technology level. The logic of developing suitable models for the local market is not hard to understand, but how to achieve the optimal balance between product competitiveness and commercial interest is a complex topic.

Great Wall Motor's answer is to layout R&D bases globally and invest in testing and experimental facilities. On the basis of global environmental actual testing, creating a "Guiyuan" platform with multiple powertrains for one vehicle. Reducing costs with 80% parts commonality, and achieving rapid derivation to adapt products to different markets. For example in Brazil, Great Wall took the lead in putting into production the H6 PHEV version supporting flexible fuel Flexfuel, while also ensuring monthly sales reached 5,671 units, taking the top spot in sales.

03

From a Single Vehicle to an Entire Industrial Ecosystem

But local production and system integration are still not the end point, automakers also need to answer how to operate vehicles and users for the long term.

NETA was once the best-selling Chinese brand in Thailand and also achieved local production. But after parent company Hozon New Energy entered bankruptcy proceedings, production and sales in Thailand stalled, exposing problems such as parts shortages, service center closures, and warranty fulfillment issues. In May 2026, the Thai court accepted a class-action lawsuit covering more than 20,000 NETA car owners.

Zhang Yongwei mentioned in the speech "100-1=0": if one automaker has problems in the overseas market, the consequences may be borne by the entire Chinese automotive industry. SANY Heavy Truck Chairman Liang Linhe also pointed out that some enterprises in the early stage of new energy heavy truck overseas expansion already had problems such as low-price competition, insufficient product adaptability, commitments detached from reality, and absence of after-sales service, ultimately turning short-term sales into long-term costs for the entire Chinese brand.

The commercial vehicle market better proves the importance of lifecycle operations.

Di Shang Tie Chief Marketing Officer Kang Pinglu said: "Commercial vehicles are essentially not just a sales market, but an operations market." Overseas customers widely adopt long-term leasing plus service models, financial institutions and operators need to manage vehicle risks for 7 to 10 years. Therefore, automakers not only need to sell new cars, but also cover recharging, maintenance, asset management, used car residual value, and recycling, achieving "run frequently, manage well, exit smoothly".

This ecosystem construction cannot be accomplished by a single enterprise, but is collaboration of the entire industry. As Zhang Yongwei said, synergistic global expansion should become a hard constraint for the industry, enterprises must avoid clustering construction, low-price competition, and value internal friction, and also jointly bear the global responsibility of Chinese automobile brands.

In this process, supply chain enterprises also play an important role.

Practices of Desay SV, ADI, and Sunwoda together point to one path: automakers can drive Chinese supply chains to go out together, cooperate with Chinese Tier 1 suppliers that already possess global manufacturing and service capabilities, and also leverage the existing networks of multinational suppliers. Choose cooperation methods based on local needs, rather than repeating construction of a closed system in every market.

Among them, global partners can provide local regulatory experience, on-site engineering support, and cross-regional unified standards; battery enterprises must also use tools such as Battery Passports to meet lifecycle requirements such as carbon footprint, data security, supply chain due diligence, and recycling.

04

Big Company Perspective

The process of changes in Brazil's import tax rates reminds Chinese automakers: when product competitiveness translates into considerable market share, host countries will inevitably propose new interest demands such as local manufacturing, services, compliance, and social responsibility. Similar changes will appear in more markets in the future.

Therefore, measuring Chinese automotive global expansion cannot just look at sales volume, but more importantly look at localization rates, user satisfaction, compliance capabilities, and social responsibility contributions.

The next stage of Chinese automotive globalization is not just about letting more cars drive out of China, but letting technology, manufacturing, and service capabilities truly enter locally, to continuously create value for users, industries, and society.