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China carmaker’s $400mn Brazil plant launches in 2013
August 11, 2013, 5:40 pm

Founded in 1997, Chery Automobile quickly has grown to become one of China's biggest carmakers [Xinhua]

Founded in 1997, Chery Automobile quickly has grown to become one of China’s biggest carmakers [Xinhua]

Chinese automaker Chery’s new $400 million plant in Brazil will be operational this year, reported Chinese media on Sunday.

The plant in the city of Jacarei in Sao Paulo was announced in 2011.

Brazil is the world’s fourth-biggest car market. Demand in the automobile market is expected to grow in Brazil as it prepares to host the World Cup in 2014 and the Olympic Games in 2016.

Chery Auto has introduced its QQ, Cielo and Tiggo models in the Brazilian auto-market.

Sao Paulo state police started using the company’s Celer models in July 2013.

Operation of the new plant in Brazil will help reduce tax to make its products more competitive, the company said.

In 2012, the Brazilian government announced tax breaks for carmakers to increase investment in the country. President Dilma Rousseff announced extending the tax breaks till the end of 2013.

German car maker Daimler and Japanese firm Honda have also announced manufacturing and assembling plants in Brazil in the past two weeks.

According to National carmaker association Anfavea, in the first seven months of the year, dealerships sold 2.14 million new vehicles in Brazil, up 2.9 per cent from the same period of 2012.

Founded in 1997, Chery Automobile quickly has grown to become one of China’s biggest carmakers. The company currently builds about 15 models of passenger cars, minivans and commercial vehicles and sells vehicles in around 80 countries.

The company is the China partner for the Jaguar Land Rover unit of India’s Tata Motors.

 

Source: Agencies

 

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