Chinese automaker Great Wall Motors (GWM) has signed an agreement with the Sao Paulo state government in Brazil to produce small hydrogen-powered cargo vehicles in the country.
The agreement is part of the Chinese automaker’s plan to invest 10,000 million reais ($2,000 million) until 2031 in Brazil. The development of projects for the introduction of hydrogen-powered fleets in the state will be carried out at GWM’s headquarters in Iracemápolis, in the former factory of the German Mercedes Benz. The hybrid units are set to be manufactured in 2024, and the company aims to turn the Iracemápolis plant into an export centre for the rest of Latin America. With this agreement, GWM hopes to increase its supply in Brazil and reach an annual turnover of 30,000 million (about 5,550 million dollars) in 2025.
Brazil’s Sao Paulo state government has pledged to join universities and current ethanol producers in the studies for the “implementation of an entire logistics chain” of this type of hybrid vehicle. Governor Tarcísio de Freitas indicated that the agreement was signed through the state investment agency InvestSP and does not contemplate direct investment from the regional government. However, fiscal benefits such as tax reductions for vehicle buyers will be provided. De Freitas stated that “Sao Paulo wants to be a leader in the energy transition process,” which has already been demonstrated in the production of ethanol from sugarcane, and hydrogen-powered utility vehicles “will revolutionize Brazilian transportation.”
GWM’s arrival in Brazil is part of a vast internationalization plan that has led it to manufacture vehicles in Russia and Thailand in the last two years, and it also intends to do so in India. In South America, the company has a small assembly plant in Ecuador and sells its models in Uruguay, Peru, Bolivia, Paraguay, Argentina, Colombia, and Chile.
Hydrogen-powered vehicles are gaining attention as a sustainable alternative to traditional gasoline-powered vehicles due to their zero-emission technology. These vehicles produce water vapour as the only exhaust emission, unlike gasoline-powered vehicles that emit harmful pollutants. With GWM’s investment in Brazil, the country could potentially become a leader in the adoption of hydrogen-powered vehicles in South America.
Overall, GWM’s investment in Brazil to produce small hydrogen-powered cargo vehicles can have a significant impact on the country’s transportation sector, providing a sustainable alternative to traditional gasoline-powered vehicles. With the Brazilian government’s support in the implementation of an entire logistics chain, GWM’s plan to turn the Iracemápolis plant into an export centre for the rest of Latin America could also boost the country’s economy.
