China Automotive Systems (CAAS), China-based supplier of power steering components and systems, will form a joint venture (JV) with two automotive companies to target local markets Brazil automotive South America.
The names of the two companies were not disclosed but the company Brazil through its subsidiary, Hengsheng will have an 80 percent stake in the partnership is to set up, which will be based in Sao Paulo and Brazil partners will have a stake of 15 percent and 5 percent.
Chen said CAAS Chairman while Brazil is the most important economic engine in South America, and China has surpassed the US as a leading trade partner in Brazil.
"The automotive Market is increasing in Brazil, with annual demand is estimated to be OEM currently 3.5 million vehicle and aftermarket sectors are growing rapidly," said Chen.
"We have seen the Chinese, such as Auto automobile Chery, one of our largest customers, managed to penetrate the market of Brazil with a high quality, added value of the vehicle and believe we can also take advantage of this trend.