Shanxi auto firm opens KD factory in Brazil

A ceremony was held to mark the start of knocked-down (KD) production by Shanxi Victory Auto Co in Brazil on Dec 15, the company's first KD project in South America.

KD production involves a company sending the parts needed to make a finished product to a designated manufacturer. For the Brazilian project, final assembly will take place in a factory covering about 30,000 square meters.

Using the KD system, the factory will assemble and sell a range of vehicles including single and double-row trucks, and nine-passenger cars, with an expected annual output of 2,000 vehicles.

The project in Brazil is a successful attempt to explore overseas markets by Shanxi Victory Auto Co, which is based in Changzhi city, Shanxi province. It will not only help reduce high taxes on exported finished vehicles and cut costs, but also further increase the company's exports and enhance the influence of "Made in Changzhi" –– by taking advantage of local policies, business environments and resources.

The firm expects to further its partnership with Brazil in vehicle production, sales and after-sales service over the coming years.

And the company eventually plans to establish overseas KD factories in countries such as Vietnam, Uzbekistan, and Egypt to expand its penetration of markets in Asia, Africa and Latin America.