Chinese group JAC Motors plans to take parts suppliers to Brazil

11 April 2012

Chinese group JAC Motors plans to take with it to Brazil the companies that already supply its car manufacturing parts in China in order to meet the requirements of the new automotive regime published last week in Brazil’s official journal, said the chairman of JAC Motors Brasil.

On the sidelines of the III Forum for the Automotive Industry, Sérgio Habib said that the company would be able to comply with the new automotive regime approved by the Brazilian government and not be charged the higher rate of Tax on Industrialised Products (IPI) as it would “be impossible to have national incorporation of 65 percent in just 12 months and easy to manage it with the new deadline, which is now three years.”

The factory of the Chinese group will be built in the Camaçari industrial hub, in Bahia, and is expected to start operating in 2014 with capacity to produce 100,000 vehicles per year following an estimated investment of 900 million reals (US$492 million).

As well as the idea of taking current Chinese suppliers to Brazil along with them, JAC Motors Brasil also plans to make use of existing opportunities in the industrial hub, which already has an important automotive industry facility, which supplies part to the Ford factory there.

Jianghuai Automobile Co Ltd (JAC Motors) is a Chinese state company based in Hefei, Anhui province, which manufacturers light passenger and goods vehicles. (macauhub)