Anhui-based Chinese vehicle manufacturer Jianghuai Automobile Co. (JAC Motors) and Brazilian group SHC Tuesday signed a 10-year contract to export Chinese cars to the Brazilian market, according to TV station Globo.
According to the president of SHC, Sérgio Habib, investment will total US$100 million, not counting the amount applied to set up the dealership network, which will initially total 50 dealerships (25 belonging to SHC group itself).
This will be JAC's first taste of the Brazilian market where it will compete with other Chinese companies such as Hafei Motor, Jinbei Automobile, Chana Motors, Effa Motors (Changhe) and Chery.
According to Habib, the first units are due to arrive in Brazil in march 2010 and will start to be sold in Brazil at the end of the year.
SHC projects to sell 3,000 units per month.
"In 2011 I believe we will sell 35,000 cars and gain a 1 percent market share," Habib estimated.
"In 2012 we plan to sell 50,000 units. There is a lot of room for growth in the Brazilian market.
Also according to Habib, the four models imported into Brazil will be launched simultaneously with China.