Car firms make inroads in Brazil

An electric bus made by BYD Co Ltd makes its debut in Rio de Janeiro. The Chinese auto company is making inroads into South America with a new plant in the city of Campinas, Brazil. Building the plant, BYD's first in the region, will cost about $90.2 million. The facility is slated to open in 2015. [Photo/Xinhua]

Chinese automaker BYD Co Ltd is making inroads into South America with a new plant in the city of Campinas, Brazil.

The cost of building the plant, BYD's first in the region, will be about 200 million reais ($90.2 million). It is slated to open in 2015.

"In the first year of operation, the plant will have a maximum production capacity of 1,000 electric buses, as well as all of their batteries," said BYD Brazil's General Manager Tyler Li.

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The vehicles are expected to be sold in local markets or exported to other countries in the region.

The Shenzhen-based automaker also plans to eventually open a research and development center in Brazil for its photovoltaic, smart-grid and LED lighting businesses.

BYD's move is among the latest efforts of Chinese automakers to enter the Latin American market.

Chery Automobile Co Ltd will start production of three models at its $400 million plant near Sao Paolo in July, the company said.

The Anhui province-based company is also planning a research and development project to support its local plant, which has a projected capacity of 100,000-150,000 vehicles a year.

Chery expects its sales in Brazil this year to surge by 30,000 units.

Zhejiang Geely Holding Group also plans to form a joint venture in Brazil, aiming to acquire a greater market share in the country through locally produced vehicles.

The investment needed is estimated at 650 million reais, and the venture would produce 100,000 vehicles annually, according to the company.

Experts say local production will go far in helping Chinese automakers get established in the country.