Brazilian investors struggle to localise Chinese truck production

Like their passenger car counterparts, Chinese commercial vehicle OEMs want a slice of the attractive Brazilian market. It may be the world’s fourth largest market, with more than 150,000 trucks sold each year, but that number is only relevant to those OEMs producing locally. The country has trade barriers to vehicle imports, and offers advantageous financing from its development bank, BNDES, with interest rates below inflation for products with a local content above 60% by weight and value. In short, it is an attractive but difficult market to exploit.