The Brazilian government is being urged to launch an official antidumping probe into Chinese-made passenger vehicles sold in the country amid claims that some Chinese brands benefit from unfair competition practices, according to local reports.
Brazil’s National Association of Automotive Vehicle Manufacturers (Anfavea), an industry group representing 25 US, European, Japanese and South Korean automakers with local production operations, confirmed it had already commissioned an anti-dumping study with a view to “defending fair competition and preventing practices that harm Brazil’s automotive market.”
The group is particularly concerned about leading Chinese brands such as BYD and Great Wall Motor, which its claims have created unfair competition conditions by selling products below cost to gain market share and undermine their competitors. It is calling for additional import tariffs to be imposed, after similar measures were introduced by the European Union (EU) in the fourth quarter of last year.
Anfavea’s president, Marcio de Lima Leite, said in a statement that the group’s investigation aims to “safeguard customers, employees, dealerships, manufacturers and the auto-parts industry.” He plans to add trucks, buses and agricultural machinery to the investigation.
BYD has responded to these allegations by “categorically denying” that it carries out dumping practices, adding that it is “focused on offering products in line with market regulations and prevailing legislation.”
The company said in a statement: “We are committed to developing Brazil’s automotive industry, which for decades has been sidelined by traditional carmakers that now resort to various tactics to conceal their lack of competitiveness.”
Great Wall Motors also responded by saying: “We strictly follow international rules and Brazilian trade legislation.”
Brazil’s Vice-President Geraldo Alckmin, who also leads the Ministry of Development, Industry, Trade and Services, said he had yet to receive a formal request from Anfavea to carry out an anti-dumping probe. The ministry confirmed that if dumping allegations were to be proved, any tariff measures would be “decided by an inter-ministerial committee.”
In late December, Brazilian authorities were reported to have intervened to suspend construction of a BYD vehicle assembly plant in Brazil's northeastern state of Bahia, saying workers were forced to live in “degrading, slave-like” conditions and had their passports and salaries withheld by the building company.
BYD subsequently confirmed it had cut ties with the building firm involved and remained committed to "full compliance with Brazilian legislation".
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"Brazil urged to probe Chinese auto dumping allegations" was originally created and published by Just Auto, a GlobalData owned brand.
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