Chinese car manufacturer Chery plans to open a new factory in Brazil this year, sources from the company cited by Chinese news agency Xinhua said Sunday.

Construction of the unit in Jacareí, in the state of Sao Paulo, began in 2011 and involved investment of US$400 million.

The Chinese manufacturer started operating in Brazil in 2009.

In July 2013 the Sao Paulo police force started using Chery’s Celer model. This is the first time that Chery’s cars have been used by a public service in Brazil.

Chery has 80 showrooms in Brazil, and the new factory will help to reduce taxes on its vehicles and allow them to be priced more competitively, company sources said. (macauhub)