Brazil is the fourth largest automobile market in the world, and is also the battlefield for fierce competition among major auto brands. How can Chinese car companies stand by? Jiang Caihuai, deputy general manager of Jianghuai Automobile Co., Ltd., said on the 26th that the JAC Brazil plant will be completed and put into operation in 2015 with a total investment of 600 million U.S. dollars and an annual output of 100,000 vehicles.

Chery, Geely, Lifan, Haima, Foton, etc. have all started sales or even invested in factories in Brazil. Chinese car brands that have made their way into the Brazilian market have made great strides. In terms of new energy vehicles, the BYD pure electric buses manufactured in China will also pass local certification in June and open on the streets of Brazilian cities. The $100 million BYD Brazilian plant is also set to settle in São Paulo.

What these companies see is not only the present of the Brazilian market, but also its future. Li Tie, general manager of BYD Brazil, said that the 2014 World Cup and the 2016 Olympic Games will further increase market demand. At the same time, Yan Cairong, who is also the general manager of Jianghuai Automobile International Corporation, pointed out that Brazil is a BRICS country and has good growth and is "a major opportunity."

Hailer, a Brazilian diplomat based in Beijing, said that in recent years, China’s economy has developed rapidly, which has enabled Chinese car companies to have capital and technology to develop abroad. If they build a factory in Brazil, they can also export their cars to other Latin American countries. He disclosed that currently Beiqi is planning to build a factory in Brazil to produce SUVs, and the local "all states welcome them."

Zhai Cairong said that the Brazilian auto market has long been monopolized by European and American auto brands, has entered a higher threshold and level of consumption, and has a higher demand for products and marketing services. It is a test of the overall strength of R&D, production, sales, and service of auto companies. Prior to launching products in Brazil, Jianghuai carried out more than 200 transformations of already mature domestic models.

Lu Shanming is the Manager of Investment Department of China (Brazil) Investment, Development and Trade Center. He believes that the Brazilian market is "everything is a Kaner," which mainly includes the challenges of heavy tax burden, strict labor and environmental protection laws, high operating costs, and large exchange rate fluctuations. He also pointed out in particular that the tax on industrial products in Brazil has constantly changed and that it has “stimulated the nerves of Chinese car companies”.

In 2012, Brazil revised its policy to impose heavy taxes on imported cars and tax incentives for locally produced cars. Chery and Jianghuai’s exports to Brazil have been severely affected. However, it is also this policy change that has made Chinese auto companies firm in their determination to build a factory in Brazil.

Li Tie said that lithium iron phosphate batteries used by BYD's electric buses are environmentally friendly and the company plans to build battery factories in Brazil.

Li Tie worried that Brazil has no clear policy on new energy vehicles. Some Brazilian consumers also have prejudice against Chinese brands and are worried about after-sales service.

“Building a factory in the local area can solve the problem of after-sales service and give customers a sure-footed pill,” said Li Tie. He called for Chinese car companies in the Brazilian market to "hug more and cooperate more than compete in order to gain a foothold in the market."

Yan Cairong said that in addition to products and services, professional partners are another “killer” for JAC to enter the Brazilian market. According to him, the Brazilian partner SHC Group is the largest automotive dealer in Brazil. With 25 years of professional experience, he can help JAC “open the Brazilian market and grow rapidly, and respond to the challenges here.”

Yan Cairong believes that the fierce competition in the Brazilian market and the stable pattern of the new Chinese automobile brands entering this market are a "stuttering agent" to break the calm and face pressure from all sides. The latest industry statistics show that currently, 12 of the 51 brands in the Brazilian automotive market come from China, and China has become the “biggest brand exporter”. In 2013, the overall market share of Chinese car companies was less than 1%.

There are still cultural differences in the way that Chinese companies want to enter Brazil. These differences exist in both corporate negotiations and daily life. Li Tie said that in Brazil, "the speed is not up to expectations." Brazilians are more willing than the Chinese to enjoy life.

“The future of the Brazilian market is bright, but the road is difficult.” Li Tie said.