Chinese NEVs gain ground in South America's ride-hailing market

Photo shows a pure electric vehicle model jointly introduced in Brazil by 99, a Brazilian local services platform, and a Chinese automaker. (Photo courtesy of the interviewee)

Since the beginning of the year, high global oil prices have dealt a significant blow to the ride-hailing industry. In South America, a group of Chinese companies expanding overseas have brought more eco-friendly, energy-efficient and cost-effective electric vehicles to the market, enabling local ride-hailing drivers to switch to Chinese new energy vehicles (NEVs) and reduce their daily operating costs.

In many South American countries, the vast majority of ride-hailing drivers use gasoline-powered vehicles. Rising fuel costs have put greater pressure on their incomes. With their significant energy-saving advantages, Chinese NEVs are becoming a practical option for local drivers seeking to cut daily expenses.

Luis, who has been a ride-hailing driver in Sao Paulo, Brazil, for eight years, drives a Haval H6 HEV by Chinese automaker GWM. His hybrid vehicle costs about 0.35 to 0.4 Brazilian reais (about $0.06-$0.08) per kilometer to operate, compared with more than 0.8 reais in fuel costs for a gasoline-powered vehicle of the same size. Switching to a hybrid vehicle can cut operating costs by up to 50 percent.

Most ride-hailing drivers in Brazil are self-employed, making the cost of more than 100,000 reais for an NEV a significant burden. Even those willing to switch vehicles have to weigh practical concerns, such as whether charging is convenient or could affect their time on the road, the burden of loan repayments, and the vehicle's long-term resale value.

What ultimately gives them the confidence to make the switch is a group of Chinese companies expanding overseas together. Chinese automakers are exporting more eco-friendly, energy-efficient and cost-effective NEVs to Brazil, while Chinese ride-hailing platforms are drawing on their operational experience to put these vehicles to use in response to local mobility needs.

Recently, 99, a Brazilian local services platform operated by Chinese ride-hailing company DiDi Chuxing, signed a cooperation agreement with Brazilian car rental company Movida to offer drivers lower-cost electric vehicle rental options. According to 99, drivers can cut their operating costs by about 80 percent by switching from gasoline-powered vehicles to NEVs.

An exhibitor (second from right) demonstrates a DC fast charging station to visitors at the smarter E South America 2026 in Sao Paulo, Brazil. (Xinhua/Jin Haoyuan)

As of now, 99's services cover more than 4,400 cities across Brazil, with more than 60 million active users and over 1 million ride-hailing drivers. The platform has more than 35,000 NEVs in operation, which have traveled more than 200 million kilometers in total.

In recent years, Brazil's NEV market has grown rapidly, with Chinese NEV brands proving particularly popular. Data from the National Association of Motor Vehicle Manufacturers of Brazil shows that Brazil imported more than 280,000 vehicles in the first half of the year, with nearly half coming from China.

However, the local charging infrastructure remains underdeveloped, hindering the wider adoption of NEVs. Chinese companies have identified both this structural shortcoming and the vast market potential it presents.

In July, 99 reached a strategic cooperation agreement with GAC Energy, GAC International and Brazilian charging operator GreenV, planning to deploy 242 fast charging stations in Brazil by 2030.

In March, GWM delivered nearly 10,000 portable vehicle chargers to Brazil. Since 2024, Chinese automaker BYD has partnered with Shell Brasil to build 600 new DC charging points in eight major cities, with plans to deploy 1,000 fast charging stations in Brazil by the end of 2027.

The growing use of Chinese NEVs by ride-hailing drivers overseas reflects a quiet shift in the way China's NEV industry is expanding abroad—from version 1.0 to version 2.0.

Under the 1.0 model, Chinese NEVs were exported mainly as complete vehicles, with transactions largely ending once the vehicles were delivered. The lack of service networks and charging infrastructure limited local awareness and acceptance of Chinese NEV brands.

Under the 2.0 model, vehicle manufacturing, leasing and operations are integrated into a complete ecosystem. By addressing local pain points and providing practical solutions, this model enables Chinese NEV brands to establish a deeper presence in overseas markets.

Many Chinese automakers have begun building plants overseas in an effort to localize their supply chains. BYD's Brazil plant, which began production last July, rolled its 100,000th NEV off the production line this July.

More diverse vehicle supplies and increasingly complete after-sales services and supporting systems are enabling platforms and rental companies to offer drivers more vehicle models and usage options. For mobility platforms, this means NEVs are gradually moving from small-scale pilot programs toward large-scale application, said a representative of DiDi Chuxing.

In 2022, 99 took the lead in establishing the Brazilian Sustainable Mobility Alliance to promote electric vehicle adoption and the development of charging infrastructure. The alliance now has more than 30 Chinese and Brazilian companies from sectors including automobile manufacturing, vehicle leasing, energy and digital banking. Over the next five years, 99 plans to promote the registration and operation of more than 300,000 NEVs in Brazil, further advancing green mobility and low-carbon logistics in the country.