A group representing about 25 American, European, Japanese and South Korean carmakers in Brazil on Wednesday urged the Luiz Inacio Lula da Silva administration to investigate China’s alleged dumping practices and slap tariffs on leading mainland auto brands BYD and Great Wall Motors.
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In a statement, Marcio de Lima Leite, president of Brazil’s National Association of Automotive Vehicle Manufacturers (Anfavea), said the group had commissioned a study on the issue to “defend fair competition and prevent practices that harm Brazil’s automotive market”.
The study would thus safeguard “customers, employees, dealerships, manufacturers and the auto-parts industry”, he added.
Anfavea claimed that Chinese brands had created unfair competition conditions by benefiting from dumping – the practice of selling products below cost to undermine competitors in the long run.
While the industry group’s study would focus primarily on passenger vehicles, Anfavea also revealed plans to push for investigations into trucks, buses and agricultural machinery manufacturing.
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The association represents foreign carmakers with operations and manufacturing facilities in Brazil. Its members include Audi, BMW, Fiat, Ford, General Motors, Honda, Hyundai and Toyota, among others.