Chery enters Brazil market with Tiggo launch

Shanghai, July 20 (Gasgoo.com) Chinese automaker Chery Auto has recently launched its Tiggo SUV in Campinas, an industrial city in southern Brazil. This is the first Chery vehicle model to sell in Brazil, marking Chery's formal entry into the Brazilian auto market.

The 2.0-liter Tiggo SUV was assembled at Chery's joint venture plant in neighboring Uruguay and imported to Brazil for sale for 49,000 reals ($25,000). Starting at the end of this month, the Chery Tiggo will be sold through 27 local car dealers in 25 Brazilian cities.

In addition to this Tiggo SUV, Chery will also import its QQ and A3 models made in China and the A1 built in Uruguay to the Brazilian market later this year. The four models are expected to sell 10,000 units by the end of 2010.

Chery Auto plans to open a $700-million factory in the state of Rio de Janeiro, Brazil to tap into the country's growing auto market. The plant, to make the Tiggo SUV first, will have an annual capacity of 150,000 vehicles.

Last month, sales of new vehicles in Brazil surged 17.2% year on year, totaling 300,174 units. Sales in the first six months this year rose 3% to an all-time-high of 1.45 million units.

Chery Auto has decided to locate its Brazilian headquarters in St. Paul, Brazil-based Agencia Estado reported last week.