ANÁPOLIS, Brazil – On March 26, 2026, Changan Automobile officially commenced operations at its new joint venture manufacturing facility in Anápolis, Goiás. Established in partnership with the CAOA Group, Brazil’s leading automotive distributor, this milestone marks Changan’s transition to full-scale localized production in the largest economy in Latin America.
Localized Production and the “Flex-Fuel” Advantage
The initial phase of production includes three key models, headlined by the UNI-T. To meet the unique demands of the Brazilian market, these vehicles are equipped with advanced Flex-Fuel engines, capable of running on gasoline, ethanol, or any combination of the two.
- Powertrain Options: The lineup covers Internal Combustion Engines (ICE), Hybrids (HEV), and Plug-in Hybrids (PHEV).
- Strategic Fit: By adapting to Brazil’s ethanol-heavy energy structure, Changan ensures its products are ready for immediate mass-market adoption.
High-Level Political and Brand Support
The inauguration ceremony was attended by Brazilian President Luiz Inácio Lula da Silva, Vice President Geraldo Alckmin, and Chinese Ambassador Zhu Qingqiao. President Lula praised the investment for its role in Brazil’s “Re-industrialization” strategy and job creation.
Changan’s premium electric brand, Avatr, also took center stage. The Avatr 11, 06, and 07 were showcased at the event, signaling the brand’s intent to utilize the Changan-CAOA network to penetrate the high-end EV segment in South America.
Why Brazil? Navigating Tariffs and Regional Reach
The move to local manufacturing is a calculated response to Brazil’s evolving trade policies:
- Tariff Avoidance: Import taxes on EVs and hybrids currently sit at 25%–30% and are set to rise to 35% by July 2026. Local production completely circumvents these costs.
- Mercosur Access: Vehicles produced in Brazil can be exported to Argentina, Uruguay, and Paraguay with significant tariff preferences under the Mercosur trade bloc.
- Market Scale: With annual sales consistently exceeding 2 million units, Brazil serves as the indispensable anchor for any brand seeking a dominant position in South America.
Rapid Execution and Global Growth
Changan’s progress in Brazil has been remarkably swift. Following the Avatr brand launch in Sao Paulo in November 2025, the start of local production took less than six months—a testament to Changan’s mature supply chain and deep collaboration with CAOA.
In 2025, Changan’s overseas sales reached 637,000 units (a 19% year-on-year increase), now accounting for over 20% of the group’s total volume. The Brazilian plant joins Changan’s existing global manufacturing nodes in Southeast Asia and the Middle East, forming a comprehensive international production network.