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Chinese giant Neta Auto plans its own factory in Brazil to produce electric cars

Written by Ruth Rodrigues
Published 04/06/2024 às 10:00
Neta Auto arrives in Brazil with plans for its own factory, dealership network and a distribution center for electric car parts.
Photo: Toyota/Disclosure

Neta Auto, a Chinese manufacturer, arrives in Brazil with three electric cars and plans for local production in 2026, possibly at the Toyota factory in Indaiatuba. Focused on electrification, the company aims to establish a network of dealerships and a parts distribution center in São Paulo.

Chinese manufacturer Neta Auto is expanding its horizons and, from the beginning of the second half of the year, arrives in Brazil with the promise of revolutionizing the market automotive with three new models of electric cars. The company follows in the footsteps of other Chinese giants, such as BYD and GWM, by announcing not only its entry into the Brazilian market, but also its intention to establish a factory in the country by 2026.

International expansion and focus of Neta Auto in Brazil

Neta Auto is not new to international markets.

With factories already operating in China, Thailand and Indonesia, the company now turns its eyes to Latin America.

Brazil, Mexico and Malaysia are the next destinations chosen for new manufacturing plants.

In the case of Brazil, Neta Auto is strongly considering the acquisition of the Toyota factory in Indaiatuba (SP), which will close its activities by the end of 2025.

This location already has a robust infrastructure, covering 1,5 million square meters, facilitating the transition to the production of electric vehicles.

Strategy to buy Toyota factory in Brazil

Henrique Sampaio, Director of Marketing and Product at Neta in Brazil, emphasizes the strategic advantage of acquiring an existing factory.

Building a plant from scratch in less than two years is unfeasible. Having a factory ready saves time and investment.

“It makes sense [from a strategic point of view] to have a factory in the state of São Paulo and for it to be ready. Therefore, there is this study [on the possible purchase of Indaiatuba]”, stated Henrique.

Initially, the operation will follow the Completely Knocked Down (CKD) regime, where cars are assembled from imported parts.

However, the factory will require adaptations to accommodate the production of electric vehicles, which require specific assembly lines and infrastructure for high-capacity batteries.

Neta Auto plans dealership network and distribution center

While the definition of the factory location is not materialized, Neta Auto is already moving to establish its dealership network and a parts distribution center in São Paulo.

Sales of first imported models are scheduled to begin in 2024.

For Wilson Sun, president of Neta Auto and executive vice-president of the international business department, “Brazil is very important for the electric car market. Therefore, there will be a parts distribution center and specialized workshops here. This start of operation will be in São Paulo. The factory needs to be in a location that meets the brand’s logistical market demands.”

Electric car factory in Brazil will be strategic for the Chinese giant

The Brazilian factory will have a strategic role, not only for the local market, but also for other countries in South America.

Neta Auto plans a major offensive in the region, with Chile being one of the first to receive the brand's launches in the second half of 2024.

As a result, local production will allow Neta Auto to offer vehicles at more competitive prices and adapt models to the specific needs of South American consumers.

The transition to electric car production in Indaiatuba will represent a significant challenge.

Although the factory already has some preparation for electrified vehicles, such as the production of the flex hybrid Corolla, the adaptation to fully electric cars will require substantial investments.

Additionally, existing infrastructure will need to be modernized to support the assembly of robust batteries and other electric vehicle-specific components.

The arrival of Neta Auto in Brazil marks a new chapter in the national automotive market, especially in the electric car segment.

With ambitious plans to launch three models this year and start local production in 2026, the company demonstrates confidence in the potential of the Brazilian and South American market.

The acquisition of the Indaiatuba factory, if completed, will be a crucial step towards establishing Neta Auto as a relevant player in the region's automotive industry.

The combination of innovative vehicles, local production infrastructure and a robust distribution network positions Neta Auto as an emerging force in the electric car market in Brazil and beyond.

Discover Neta Auto’s electric car models

Source: Engine1

With information Auto sport.

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Ruth Rodrigues

Graduated in Biological Sciences from the State University of Rio Grande do Norte (UERN), she works as a writer and scientific disseminator.

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