GM invests another R$ 3.5 billion in Brazil to face the Chinese with national hybrids

General Motors announced this Wednesday (24), in Brasilia, an additional investment of R$ 3.5 billion in Brazil, which brings to R$ 10.5 billion the automaker’s plan for until 2028. The new investment will be directed mainly to the production of Chevrolet’s electrified vehicles and the modernization of the company’s operations in the state of São Paulo. The announcement was made alongside the Vice President of the Republic, Geraldo Alckmin (PSB).

The amount complements the R$ 7 billion announced in 2024 and reinforces the manufacturer’s strategy for the energy transition in the Brazilian market. According to GM, the funds will be used to renew the portfolio, incorporate new technologies and expand engineering and manufacturing capabilities — although the company did not detail which plants in São Paulo will receive the money.

“The automotive industry is going through a period of profound technological transformation. This investment expands our capacity to develop and produce competitive vehicles in Brazil, accelerates the adoption of new technologies and contributes to the formation of skills and jobs that will be essential for the future of mobility,” said Thomas Owsianski, president of GM South America.

The move paves the way for the arrival of Chevrolet’s first national hybrids, which today does not have models of this type in its lineup. Among the candidates are the Tracker SUV and the Montana pickup, manufactured in São Caetano do Sul. For them, GM is developing in Brazil a 48-volt mild hybrid system coupled to three-cylinder turbo engines, such as the 1.2 flex, which today delivers 141 hp and 22.9 kgfm.

Although Chevrolet has not yet confirmed which will be the first models to receive the technology, the initiative follows the advance of the competition. Electrified cars already account for about 16% of registrations in the country, a share led by brands such as BYD, GWM and Toyota.

The movement is also favored by the federal government’s Mover program, which grants tax benefits to companies that produce electric and hybrid vehicles in the national territory.

Since the original 2024 plan, GM has renewed the Onix and Tracker, expanded the offer of electric vehicles with the Spark EUV and Captiva EV — produced at the Ceará Automotive Pole — and prepares a new phase of electrification for the brand.

The decision also follows an inflection in the automaker’s global strategy. After prioritizing fully electric cars in recent years, GM has returned to betting on hybrid systems: while Brazil will receive mild hybrids (MHEV), the company plans to launch plug-in hybrids (PHEV) in North America by 2027.