Chinese automakers plan to factories in the country even after drop in sales

After registering in 2013 the first vehicle sales drop in a decade and subdued prospects for this year, Brazil follows attracting new automakers. Two Chinese groups, Geely and BYD intend to open local factories, the first for the production of cars and the second to make electric buses.
The President of Geely International, Lin Zhang, said yesterday that sets the factory project until the end of the year. "We are evaluating that type of vehicle produce," he explained. The options are a unit with a capacity of 20 thousand SUVs (SUVs) per year or a larger factory to 150 thousand cars, including compacts.
The value being invested will depend on that decision. Executives of the group, which owns the Swedish Volvo, have visited Minas Gerais, Paraná, Santa Catarina, Bahia and São Paulo-which has the preference of the Brazilian partner in the project, the group, Korean representative also Gandini Kia Motors in the country.
Between this year and 2016, eight manufacturers inaugurate units in Brazil, totaling nearly $ 5 billion in investments. Second source of the São Paulo Government negotiating the installation of the unit, the BYD recently little more than $ 200 million ($ 100 million) for a local project, still embryonic.
The brands that will open factories producing cars are Audi, BMW, Chery, Foton, JAC, Land Rover, Mercedes-Benz and Sinotruk. In addition, three groups already present in Brazil-Fiat, Honda and Nissan-will inaugurate new branches.
Even with the low of 0.9% in sales last year for 2012, to 3.8 million vehicles, including trucks and buses, Brazil remained as the world's fourth-largest market. The forecast for this year is about stability, with at most 1.1% recovery, according to design the manufacturers.
"The Brazilian market lit a yellow light, but still is very relevant," says Marcelo Cioffi, PricewaterhouseCoopers (PwC). "The Brazilian performance cannot be compared to that of China, but the Country has room to keep growing, especially when we see the relationship of inhabitants per vehicle, still low compared to other countries."
The Brazil's 5.5 inhabitants per vehicle. In Argentina, the relationship is of 4.5 inhabitants per vehicle, in Europe and in the United States, 1.9 1.6. While Brazil patina, China follows world leadership absolute automotive market. With almost 22 million vehicles sold in 2013, surged to 13.9% on 2012. Analysts design new growth of 8% to 10% this year.
Recovery. The u.s. vehicle market, second in the world rankings, grew 7.5% in 2013, to 15.6 million units, a figure close to the pre-crisis period of 2008, when automakers received Government help to avoid bankruptcy. "This year the u.s. also will have a strong market," predicts Stephan Keese, from Roland Berger.
According to him, the u.s. economy will continue on pace of recovery. There is a high index of consumer confidence, including among those who stopped buying new cars during the crisis, and there have been many releases. "The manufacturers are putting on the market attractive models, of better quality and quite equipped."
The Japan, third in the world rankings, grew 0.13% in 2013, to 5.38 million vehicles and tends to remain stagnant. In Europe, sales dropped 2 percent, to 12.3 million vehicles, the lowest volume since 1995, but analysts see signs of recovery this year.