Sao Paulo, Brazil, 18 May – Chinese car company Chery Automobile plans to start selling its cars in Brazil this year on in 2007, the Brazilian press reported Wednesday.
According to the reports, Chery Automobile is expected to sign a partnership agreement soon with a Brazilian company to start exporting its QQ model with an 800 cc engine, which in China is sold at a price of US$6,000 and in Brazil could cost arounUS$9,280 (20,000 reais).
If the deal goes ahead, the Chery QQ would become the cheapest car sold in Brazil, replacing the Fiat Mille.
Wen Xiande, who was in Sao Paulo representing Chery at a meeting of business people from both countries, said that initially kits imported from China would be assembled in Brazil.
Having started its business by producing spare parts, Chery began producing cars in 2001 and currently has a 7 percent share of the Chinese market with the nine models it produces.
The factory, located in Anhui some100 kilometers from Beijing, produced 186,000 units in 2005 and this year is expected to produce around double that.
Company forecasts point to a production of 500,000 units in 2008 and 1 million two years later. (macauhub)