Lifan to set up auto plant in Brazil
Chinese car manufacturer, Lifan, has signed a letter of intent for a $100m plant in Brazil
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Lifan 620 Image: Carsfans2012 |
China's Chongqing Lifan Industry Group has entered into a joint venture worth 647m yuan ($100m) with Brazilian auto dealer EFFA Motors to build a 10,000 vehicle capacity assembly plant. The plant will use imported Chinese equipment to assemble cars designed for the South American market under the Lifan brand name.
Though primarily based in Chongqing, Sichuan Province, Lifan also has CKD plants in Azerbaijan, Iraq, Egypt, Russia, Iran, and Ethiopia. The exact location of the plant and the R&D centre, which will cost the two sides a further 194 million yuan ($25m) on top of the deal, have not yet been disclosed.
Lifan is not the first Chinese car company to venture into Brazil, however. In 2010, Chery Automobile Co. signed a 2.6bn yuan ($404m) deal for to build an assembly plant near Sao Paulo. What's more, EFFA Motors are not unfamiliar with Chinese automakers, and already sell vehicles made by Hafei Motor Company, Jianghua Automobil and Jiangxi Changhe Automobile in Brazil.
