A large chunk of that investment by GAC Motors will be going towards establishing a local assembly plant in Brazil.
Chinese automotive giant GAC Group has officially entered the Brazilian market, marking a major milestone in its broader global expansion ambitions. This move is a key part of the company’s “One GAC 2.0” initiative, which aims to accelerate its international growth by strengthening presence in strategic overseas markets.
As part of this “Brazil Action Plan” of GAC’s, the Chinese automaker has since introduced five models to the local market during the brand’s official launch. These include the Aion V and Aion Y electric MPVs, the Hyptec HT e-SUV, the Trumpchi GS4 crossover, and the Aion ES electric sedan.
The Chinese automaker has also wasted no time in establishing a strong foothold in Brazil, rapidly building a nationwide network of 33 dealerships and reportedly achieving over 95% market coverage. GAC International President Wei Haigang has outlined ambitious targets for Brazil, with local sales projected to hit 100,000 units within five years.
GAC’s expansion into Brazil is backed by serious financial muscle, with a US$1 billion (RM 4.4 billion investment pledged over the next five years. A major portion of this funding will go towards building a new local auto manufacturing facility, set to break ground by late 2026
But GAC’s vision for Brazil goes beyond manufacturing. The automaker is also investing in local research and development through partnerships with top Brazilian universities — including the State University of Campinas, the Federal University of Santa Catarina, and the Federal University of Santa Maria. These collaborations will focus on developing Flexible Fuel Vehicle (FFV) technologies to better suit Brazil’s unique fuel landscape, which heavily incorporates ethanol-based fuels.
Brazil’s fast-growing electric vehicle (EV) market represents a particularly promising opportunity for GAC. EV and hybrid vehicle sales jumped 37.4% year-on-year in the first four months of 2025, reaching 70,450 units. GAC is looking to capitalise on this momentum with the rollout of four new SUV models tailored to local consumer needs. The Aion ES, in particular, is being positioned for ridesharing fleets to support Brazil’s national goal of doubling its EV fleet by the end of this year.
Looking at the bigger picture, the Brazil expansion forms a crucial part of GAC’s three-year “Panyu Action” plan, which sees GAC exporting 500,000 vehicles to 100 countries by 2027. The company reached a key milestone in 2024 by selling over 100,000 vehicles overseas for the first time, more impressively represented a whopping a 92.3% year-on-year increase that underscores its growing global footprint.
Incidentally, a few of the over 100,000 exported units last year had made their way to Malaysia. Distributed locally by Warisan Tan Chong Automotif (WTCA), GAC currently offers two models in the Malaysian market: the all-electric Aion Y Plus MPV and the ICE-powered GS3 Emzoom compact crossover.
