{"id":64307,"date":"2026-04-28T05:05:00","date_gmt":"2026-04-28T10:05:00","guid":{"rendered":"https:\/\/latamobility.com\/?p=64307"},"modified":"2026-04-27T18:53:37","modified_gmt":"2026-04-27T23:53:37","slug":"scale-vertical-integration-and-speed-the-keys-to-chinas-automotive-rise-according-to-bright-consulting","status":"publish","type":"post","link":"https:\/\/latamobility.com\/en\/scale-vertical-integration-and-speed-the-keys-to-chinas-automotive-rise-according-to-bright-consulting\/","title":{"rendered":"Scale, Vertical Integration and Speed: The Keys to China’s Automotive Rise, According to Bright Consulting"},"content":{"rendered":"\n

During “Latam Mobility & Net Zero Brasil 2026”<\/strong> held in S\u00e3o Paulo, Murilo Briganti<\/strong>, COO of Bright Consulting,<\/strong> delivered the keynote titled “The new mobility route: the rise of Chinese automakers and the future of the sector in Brazil.”<\/strong><\/p>\n\n\n\n

In his presentation, Briganti offered a structural look at the transformation currently underway in the global automotive industry \u2014 a transformation driven by a confluence of factors that go far beyond the rise of Chinese manufacturers or electrification.<\/p>\n\n\n\n

To illustrate the current moment, he divided the sector’s evolution into four phases, placing special emphasis on the fourth: “the new era.”<\/strong> This phase, he explained, is not limited to the arrival of Chinese automakers or electric technology. It also encompasses onboard safety, connectivity, global value chain realignments, and geopolitical conflicts. “We are, in fact, living through a new era in the industry,”<\/strong> he stated.<\/p>\n\n\n\n

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The Exponential Leap of Electric Vehicles<\/strong><\/h2>\n\n\n\n

Briganti presented compelling data on the growth of electrified vehicles (including plug-in hybrids and pure battery electrics). Between 2020 and 2025, the global market jumped from 3 million to 21 million units<\/strong> \u2014 a sevenfold increase. The projection for 2030 ranges between 38 and 40 million vehicles, which would represent a 12 to 13 times increase in a single decade<\/strong>.<\/p>\n\n\n\n

A key enabling factor is the reduction in battery costs<\/strong>. The price per kilowatt-hour fell from $165 to $95 in 2026, approaching the theoretical parity of $100 per kilowatt-hour \u2014 the threshold beyond which battery electric vehicles become more advantageous than internal combustion ones.<\/p>\n\n\n\n

Furthermore, the executive underscored that China is not merely competing in the global market; it has completely redefined the rules of the automotive industry<\/strong>. Currently, the Asian country produces 72% of the world’s electric vehicles<\/strong> (up from 38% in 2020) and accounts for 40% of global automobile production<\/strong>.<\/p>\n\n\n\n

Briganti identified four key factors explaining this dominance. The first is industrial scale<\/strong>, enabling production volumes unattainable for most countries. The second is total vertical integration<\/strong>: Chinese automakers develop everything from software to onboard electronics, including batteries and propulsion systems. This integration generates very significant cost optimization.<\/p>\n\n\n\n

The third factor is launch speed<\/strong>. The development and launch cycle for new models in China is two to three times faster<\/strong> than that of traditional automakers. The fourth factor is hyper-competition at home<\/strong>, which, combined with the above, drives continuous technological improvement and constant price reduction.<\/p>\n\n\n\n

Two Waves of Penetration in Brazil<\/strong><\/h2>\n\n\n\n

The executive distinguished two moments in the arrival of Chinese manufacturers in Brazil<\/strong>. The first wave<\/strong> (2010\u20132020) was a relative failure: Chinese vehicles did not exceed 1% of the market due to low quality and failure to meet local consumer expectations.<\/p>\n\n\n\n

The second wave<\/strong> (2020 onward) found a unique window of opportunity. Brazil had low penetration of electrified vehicles \u2014 a market that traditional automakers had not exploited.<\/p>\n\n\n\n

At the same time, China had invested heavily in electric technology, while European and US markets were raising fiscal and regulatory barriers. Additionally, Brazil had eliminated the import tax on electric vehicles since 2015, effectively opening the door to Asian manufacturers.<\/p>\n\n\n\n

This time, Chinese manufacturers arrived with a substantial quality leap<\/strong>: cutting-edge onboard technology and highly competitive prices. “The midsize or large SUVs that the Chinese launch sell at compact car prices,”<\/strong> Briganti exemplified, explaining their rapid growth in the Brazilian market.<\/p>\n\n\n\n

\"Brasil\"
Mauricio Briganti<\/figcaption><\/figure>\n\n\n\n

22% Market Share or Triple the Volume?<\/strong><\/h2>\n\n\n\n

Bright Consulting<\/strong>‘s COO outlined two possible futures for the market share of Chinese automakers in Brazil. Both depend largely on regulatory decisions and the reaction of traditional automakers.<\/p>\n\n\n\n

In the first scenario<\/strong>, if the government demands localization rates even for vehicles assembled under CKD and SKD regimes, and if traditional automakers manage to launch competitive products because their parent companies invest in Brazil as a development hub, then the Chinese share could double from 2025 levels, reaching approximately 22% of the market<\/strong>.<\/p>\n\n\n\n

In the second scenario<\/strong>, if traditional automakers fail to position Brazil as a priority investment destination and if the Chinese achieve their maximum local production capacity, then their share could triple<\/strong>. This, Briganti warned, would affect the entire value chain and local production.<\/p>\n\n\n\n

“Someone is going to lose,”<\/strong> the executive stated. “In this scenario, some automaker \u2014 or all of them \u2014 will tend to lose market share. That’s why it’s important to move, understand what’s happening, and reposition yourself.”<\/strong><\/p>\n\n\n\n

Given the volatility and extreme dynamism of the sector, Briganti presented the tools Bright Consulting has developed to help the industry navigate this transition:<\/p>\n\n\n\n