The factory is set to be inaugurated in 2014, with an investment of $500 million. The factory will be able to produce around 100,000 units. 3,500 jobs are also expected to be created as part of this initiative.
Jianghuai Automobile Co. and SHC Group will be jointly making this investment.
Recently, the Brazilian government had raised the taxes on imported cars unless they were made with 65% of its parts being produced in Brazil. It was particularly aimed at halting the influx of Chinese automobiles in Brazil.
Sergio Habib, president of JAC’s Brazil operations, said he hoped “Brasilia would reconsider the higher taxes now that JAC’s investment plans are confirmed”.
JAC has entered the Brazilian car market with competitive prices compared to offerings from industry heavyweights General Motors, Volkswagen, Fiat and Ford. Nissan and Renault also have plans of huge investment in Brazil.
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