Chery Plans Production Base in Jacareí, Brazil

Chery Auto and the state of São Paulo signed a framework agreement today to build Chery cars in the city of Jacarei. The first phase of the project, aiming to create an annual capacity of 50,000 units, will get $134 million investment and be completed in 2013. The second phase will see capacity raised to 150,000 units a year and parts factories built. Total investment will reach $400 million. Chery will be the sole investor and owner of the vehicle plant.

chery brazil

Chery S12 (A1) and A13 (Fulwin 2) will be among the first models to roll out of the Jacarei factory. As for the popular Tiggo compact SUV, since it is assembled by Chery’s joint venture in Uruguay, Chery Socma S.A., it is unlikely to be built here.

If the plan get implemented, Chery will be the first Chinese automaker to have a Brazilian production base.

Auto sales in Brazil reached 3.1 million units last year, and is projected to rise to 3.4 million units this year, which will make the country the fourth largest auto market in the world.

In the first seven months of this year, sales of Chinese brand passenger cars and light-duty commercial vehicles in Brazil increased nearly 100% from the same period last year to 5820 units.