Shanghai, July 3 (Gasgoo.com) Brazil is expected to become a new destination for Chinese carmaker Chery Auto to explore overseas markets. Since late 2008 when its sales slumped amid the financial crisis, Chery has been trying to open new markets, Nanfang Daily reported.
Chery Auto plans to sell 3,000 vehicles in Brazil each year, local sources said. The company will first sell its Tiggo SUVs assembled at a joint venture in neighboring Uruguay. Under Mercosur trade rules, the Chinese car is exempt from import tariffs, making it truly price-competitive in the Brazilian market at the equivalent of about $23,300.
Starting in September this year, Chery Auto will import three new car models to the Brazil market, and by the end of 2010, Chery will build a sales network of 80 dealerships in Brazil, with an annual sales target of 15,000 vehicles.
Chery plans to open a 700-million-dollar factor in Brazil to tap into the country's growing auto market, and to learn more about building biofuel-capable engines, Brazil's Gazeta Mercantil daily reported in late April.
Last month, sales of new vehicles in Brazil surged 17.2% year on year, totaling 300,174 units. Sales in the first six months have risen 3% to an all-time-high of 1.45 million units for the period, Reuters reported yesterday.
General Motors do Brasil Ltda sold 55,629 vehicles in June, the highest monthly sales volume in the company's 84-year history in Brazil.
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