In the first three months of 2023, China sold 6 million vehicles, down 6.7% year-on-year, according to statistics from the China Automobile Association. This Asian giant has brands that have spread all over the world, and global brands also produce there. On May 10, Ecuador will sign a trade agreement with this country.

The Executive Director of the Chamber of the Ecuadorian Automobile Industry (Cinae), David Molina, indicates that vehicles coming from that Asian country represent between 35% and 40% of the market, and when tariffs fall, they will be squeezed into national production in these segments, which seriously affects sector.

The cheapest Chinese car in the world is also sold in Ecuador

“In the vehicles, a 15-year linear reduction has been agreed, which means that every year the tariff will fall by 2.6%” and emphasizes that vehicles of Chinese origin are already in the lowest price range on the market, although they pay a high tariff.

Why are these vehicles cheaper, even with tariffs? “This happens because Chinese brands are, for the most part, owned by the Chinese government and they manage prices through large export subsidies. In addition, the environmental intellectual property working regime they have in China makes them very cheap to produce, which is why the world has not been able to compete with China in production,” he comments.

The Chinese Embassy in Ecuador has released data on the country’s top ten automakers by sales during the first quarter of 2023. There, it is stated that five automakers have sold more than 200,000 units within the retail model.

The sales volume of brands in China is positioned as follows:

Stella Li: BYD sees great potential for electric vehicles, with rising fossil fuel prices and low electricity prices in Ecuador

Molina explains that these brands come from China, but in turn, global vehicle brands are made in China, because labor is cheaper. “In Ecuador, 35% of the vehicles that arrive are imported from China: 25% are Chinese brands and 10% are global brands,” he explains.

Six of these ten largest Chinese producers are present in Ecuador. Number one brand BYD arrived in the country last Wednesday, officially unveiling three new electric vehicles. Stella Li, executive vice president of BYD Company Limited and CEO of BYD Americas, said BYD’s goal is to bring a new electric vehicle experience to local customers and educate them about the benefits of electric mobility.