Chinese carmakers accelerate into Brazilian market

However, even if factories are built and assembly lines start to roll, the road ahead for Chinese firms is not without bumps.

JAC exports 57k vehicles to Brazil

Local car producers looking to Brazil for growth

JAC's She thinks Chinese models will be heavily scrutinized in Brazil in terms of design, manufacturing, sales and service, as Brazilian drivers have become accustomed to high-end US and European brands.

The company made over 200 adjustments to one of its popular models before taking it to the other side of the Pacific, to adapt to Brazilian tastes, She said.

Lu Shanming, a senior manager from BYD, said "barriers are everywhere" for Chinese producers, citing heavy taxation, strict regulation and high operating costs, especially given the turbulence of Brazilian tax policies concerning industrial products.

Of the 51 auto brands in Brazil, 12 are from China, an industrial survey showed recently. However, Chinese vehicles took a market share of less than 1 percent, indicating the difficulty in breaking into the market.

Chinese players would inevitably be confronted with pressures in Brazil, warned She.

To try to ride out the bumps, Chinese firms are figuring out a strategy of cooperating with experienced local companies. JAC has allied with the country's largest auto seller, SHC, which could help "open the market with rapid growth and deal with all kinds of challenges," according to She.

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