Chinese automobile manufacturer GAC has revealed plans to start producing vehicles in Brazil from 2027, with operations based in Goiás. This initiative is part of GAC's broader strategy to expand its global presence. The production will take place at a facility in Catalão, which is currently operated by local partner HPE and has the capacity to produce up to 50,000 vehicles annually. By entering the Brazilian market, GAC aims to compete with existing Chinese automakers, particularly BYD, which currently leads in sales in the country.

The partnership between GAC and HPE marks a significant milestone as it strengthens GAC's foothold in South America. GAC had previously launched operations in Brazil in May and had expressed intentions to establish local production by the end of this year. The company has existing joint-ventures in China with major Japanese manufacturers such as Toyota and Honda, and it is keen on replicating its success in the Brazilian market.

The GAC GS3, a model well-known for its 1.5 turbo engine with 170 hp and a 7-speed dual-clutch transmission, is expected to be one of the vehicles produced locally. This entry into the Brazilian automotive sector may also signal increased competition and innovation in the market as more Chinese manufacturers look to establish their brands and offerings in Brazil, challenging traditional players in the industry.