Another Chinese Automaker to Build Plant in Fast-Growing Brazil

Chinese automaker Jianghuai Automobile (JAC Motors) said it plans to build a factory in Brazil, in yet another reflection of how global companies are gradually abandoning the stagnant economies of the advanced western nations in favor of the fast-growing emerging markets.

JAC is seeking to produce 100,000 vehicles every year in Latin America’s largest car market (also the fourth-largest automaker in the world).

Other major Asian car companies, including Nissan and Honda of Japan, Hyundai of South Korea and Chery of China, already have plans to construct manufacturing facilities in Brazil.

Reportedly, JAC will invest between $600-million and $900-million for its maiden Brazilian assembly plant. The facility will be built and run in partnership with SHC, a Brazilian company which imports JAC’s vehicles. SHC is expected to cough up about half of the expenditures.

SHC’s president Sergio Habib told reporters in Sao Paulo that the factory is expected to be operational by 2014.

At present, less than 1 percent of auto sales in Brazil come from JAC.

Habib said he expects JAC to reach 3 percent of Brazil’s auto market share as the local economy continues to expand.
JAC Vice President Dai Maofang told reporters that he wants to eventually reach a 5 percent market share.