Gasgoo.com (Shanghai October 9) - Jianghuai Automobile has announced that it will build a new automobile assembly production site in Brazil's northeastern states of Bahia, Securities Times reported today. The news comes in light of Brazil's decision to raise taxes on imported vehicles by around 30 percent.
The new 900 million reais ($510.1m) factory is expected to be in operation in 2014. It will have an annual production capability of 100,000 sedans and trucks, as well as create 3,500 new jobs. The site will focus on building vehicles priced under 50,000 reais ($28,338).
JAC has exported a total of 14,400 automobiles to Brazil from January to August of this year, far higher than the Chinese industry average.
The recent Brazilian legislation is especially targeted towards Chinese and Korean cars, with the aim of protecting the local industry.
