Chinese truck manufacturer Shaanxi Automotive Group has formed a new joint-venture (JV) with its brand representative in Brazil, Metro-Shacman, according to regional media reports. They will create a new company, Shacman do Brasil, and invest USD100 million in a new Shacman brand heavy vehicle production line, with production scheduled to begin in 2016, at the existing 54,000-square metre plant in Tatui, São Paulo. The final paperwork was signed at an annual Shacman conference in China in January.
Significance: IHS Automotive forecasts the JV to produce around 200 units per annum. Production of medium-heavy commercial vehicles in Brazil is forecast to increase from about 189,000 units in 2015 to more than 236,000 in 2020. While the Shaanxi investment will slowly ramp up, it does enable the company to join the Brazilian market, with capacity that can be used for sales in Brazil or in other South American countries.
