Chinese group Chery Automobile is due Wednesday (28 August) to open its first factory in Brazil and also the first outside China, following investment of US$400 million, the Brazilian press reported.
With the commissioning of the plant, located in Jacarei, in the interior of São Paulo state, where it occupies an area of 100 hectares, the group expects to increase sales in the country and reach a market share of 3 percent by 2018.
Chery currently has a 0.27 percent share of the Brazilian market and its target of 3 percent would be higher than that of Japan’s Nissan and the equivalent of French automotive company’s Peugeot and Citroën joint Brazilian market share.
The plant will start operating with preproduction of the Celer model in two versions that will not be offered for sale. Production of vehicles for sale on the market is due to begin in December.
With estimated production of 50,000 vehicles in its first year of activity, the Chinese group hopes to be producing 150,000 vehicles per year by 2018.
As well as the factory where the vehicles will be assembled, Chery Automobile Group also invested US$130 million in an engine plant, also in Jacarei, where the 1- and 1.5-litre engines will be manufactured for use in the Celer. (macauhub/ PT/CN)