SAO PAULO (Reuters) -Chinese automaker GAC announced on Friday its product launch in Brazil, saying it expects its line of hybrid and electric cars to garner market acceptance that would allow it to start building a factory in the country in late 2026.

GAC's move comes at a time of growing competition in the world's sixth-largest automotive market, where sales of electric vehicles have been speeding up and other Chinese companies - such as BYD, Chery and GWM - have also made inroads in recent years.

The company, which last year had already announced plans to invest 6 billion reais ($1.06 billion) in Brazil over five years, will launch in the country on Saturday selling four imported electric cars and a hybrid model.

It expects sales to reach 100,000 units in the next five years, according to GAC International President Wei Haigang.

"Brazil is a huge country and very important to us," he said in an interview in Chinese through a Portuguese interpreter, adding that the automaker had a "long-term" strategy for the South American country.

Electrified vehicles represent the fastest-growing segment in the Brazilian market, with sales having jumped 37.4% year-on-year in the first four months of 2025 to 70,450 units, whereas sales of light vehicles in general rose 3.4% to 714,800 units, according to local group Fenabrave.

"We are aware that Brazil is an increasingly competitive market," Wei said.

He noted that "external influences" such as the trade war between China and the United States triggered by U.S. President Donald Trump's trade policies and sweeping tariffs did not weigh on GAC's plans in Brazil.

"We developed our strategy with the bilateral relationship between Brazil and China in mind."

Wei said that GAC was advancing in discussions with local partners and expects to be able to set up a factory in Brazil in the fourth quarter of 2026.

($1 = 5.6545 reais)