Trending

Newsletter

South America Is China’s Top Vehicle Export Destination

By: PanAm Post Staff - May 28, 2014, 11:13 am

EspañolSouth America has become the largest export destination of Chinese vehicles, according to the Association of Chinese Automobile Manufacturers (CAAM). The CAAM registered 286,500 vehicle sales in the region in 2013, which represents 30 percent of China’s total auto exports last year. Compared to the number of vehicles sold to South America in 2012, this amounts to a 19 percent increase.

Zhejiang’s largest private vehicle manufacturer, Geely, signed an agreement in 2011 with Uruguayan auto parts assembler Nordic to open a plant in the South American country. From there, Geely has sold vehicles to neighboring economies, especially Argentina and Brazil.

The state-run company Cherry opened its first factory in Venezuela in 2011 and expects to open yet another in Brazil in July. Jianghuai Automotive also plans to settle in South America.

The CAAM claims that of the 51 car brands now in Brazil’s market, 12 are Chinese. In Uruguay, the proportion is even higher: 26 of the 54 brands sold are Chinese. According to CAAM’s secretary general, Shi Jianhua, Uruguay is the ideal destination: “Compared to Brazil, its labor regulations and tax system are simpler, and control exchange is much more relaxed, so many companies use this country as a platform to reach the huge Brazilian market,” Shi said.

Source: América Economía.