Amsia Motors, a joint venture between China and Saudi Arabia, signed an initial plan on Thursday to invest $457 million to set up its first plant in Brazil in Sergipe, Brazil, for the development of hybrid and electric vehicles. .
Ames is a company operated by its parent company, Saudi Eram Group, in cooperation with German, British, Canadian and Chinese car manufacturers. Ames will be the first manufacturer to build an electric car in Brazil.
Although most of Brazil's automotive industry is concentrated in the Southeast, in recent years, the poorer northeastern region has attracted the attention of many automakers due to its strong economic development. It is reported that Fiat has begun construction of a second plant in Brazil at Pernambuco, and Jianghuai Automobile and Ford also build factories in Bahia.
Prince Faisal Al-Saud, the main investor of Ames, arrived in Brazil last weekend and confirmed the details of the investment agreement with the Sergipe state government with Emmaus President Mustafa Ahmed.
The Sergipe state government hopes that Ames will complete the construction of the plant within 14 months. In the end, in addition to producing cars, the factory also produces buses and agricultural machinery.
Although Brazil lacks legislation for hybrid and electric vehicles, many investors are discouraged by the high cost, and Ames has announced this plan.
Brazil is the fourth largest auto market in the world and the seventh largest automaker. The Automobile Manufacturers Association Anfavea expects that in 2013, Brazil will refresh its annual sales record for the seventh time, with sales reaching 4 million units.
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