Chinese motorcycle manufacturer sets up factory in Brazil

16 March 2007

Sao Paulo, Brazil, 16 March – Brazil’s Traxx Motocicletas, a subsidiary of the China Jialing Industrial Group, is to build a factory in Manaus in northern Brazil, the company’s chief executive, Hegel Pinto Vieira told Macauhub.

“We will be the third largest motorcycle manufacturer in Brazil, after only Yamaha and Honda,” said Pinto Vieira, adding that the unit, known as Moto Traxx da Amazonia, would have a production capacity of 100,000 units per year.

This level of production is not expected to be reached until three years after the factory has been built. Moto Traxx Amazonia plans to gradually raise production and plans to reach 50,000 motorcycles – half of its capacity – in 2009.

Since 2003 Traxx has been selling five models of motorcycle manufactured in China and according to Pinto Vieira has seen “higher than expected” sales growth over the last three years, which led the company to decide to open a factory in Brazil.

This year, with more motorcycles on sale – due to production in Manaus – Traxx expects to sell 20,000 motorcycles in Brazil, or double sales for 2006.

In 2003, the first year Traxx sold its motorcycles in Brazil, it sold less than 200 units in the north and northeast of Brazil, and in the following year it sold 1,200 units.

In 2005, the company moved into other regions of Brazil – south, southwest and central-eastern – and ended the year with 4,000 units sold and last year sold 10,000 units.

The China Jialing Industrial Group, which is headquartered in Chongqing, is mainly involved in the motorcycle sector and spare parts for motorcycles, but also has interests in software, bio-medicine and hotels. (macauhub)