The workshop of the world, it seems, is opening up other workshops across the globe. China’s JAC Motors has announced that it is building a factory in Brazil in order to help increase its presence in the Latin American car market. The company, which is also known as Jianghuai Automobile, has its sights set on having the capacity to build 100,000 cars each year.
In itself, Brazil is the 4th largest car market in the world, making it a very important one for car companies to get a firm foothold in. Since brands such as JAC are relatively unknown in Brazil and indeed in other parts of the world, the company has a long brand building process to go through – especially since it is competing with very well-known brands such as BMW, Volkswagen and high profile Japanese car makers such as Nissan and Honda.
JAC is likely to be creating more affordable cars for the citizens of Brazil and other South American countries.
The emerging markets are key to the success of these global car brands – and ensuring they get a presence in them now will help to prevent a kind of corporate car breakdown when buyers in Europe and North America dry up – which they arguably already are. Since countries such as Brazil have a faster growing middle class compared to more developed nations, they have a much greater thirst for new cars – especially prestige cars.
JAC is the latest in a line of Asian carmakers to have invested into Brazil. China’s Chery and South Korea’s Hyundai are among other brands which are building, or plan to build, manufacturing facilities in Brazil.
With only 1% of the Brazilian car market share, JAC have a long way to go before they become a household brand in Brazil, but with the financial muscle that they possess behind them, this is sure to grow.
Breakdown Cover from 
