Sao Paulo, Brazil, 22 Aug – Chinese car manufacturer Chery Automobile Co. Will have “insignificant” profit margins for the next ten years in Brazil as its main aim is to increase its local market share three-fold by 2015, said the company’s chairman in Brazil, Luís Curi.
With 1 percent of the domestic car market, the Chinese company’s target is to reach 3 percent by 2015, following construction of its factory in Jacareí, in the interior of Sao Paulo state, Curi said.
The factory, which represents an investment of US$400 million will have capacity to produce between 150,000 and 170,000 vehicles per year. Chery hopes to sell around 30,000 vehicles in Brazil this year, the chairman said in Sao Paulo.
“Over the next ten years we don’t forecast, we don’t expect, a return. These will be ten years of investment. Profit is relegated to the background.”
The market share of Chinese passenger car manufacturers in Brazil rose from almost zero in April, 2010 to 3.29 percent in the first half of August of this year, according to figures from the National Federation of Automotive Vehicle Distributors.
Chery was the first to start selling its cars in Brazil, in May of last year, followed by Chongqing Lifan Auto Co Ltd in December, and by JAC Motors, of the Anhui Jianghuai Automobile Co., in March of this year.
According to Curi, Chery has 82 showrooms in Brazil and hopes to reach 150 next year. (macauhub)