Portuguese 
English 
Spanish 
5 min of reading 
0 comments 
Government of Santa Catarina Articulates Entry of Chinese Automaker Focused on Affordable Electric Cars, Aiming at Tax Incentives and Logistical Advantages to Overcome Competition from Other States.
The government of Santa Catarina, through InvestSC (state agency for investment attraction), is developing a package of tax and environmental benefits to enable the establishment of an electric vehicle factory by the Chinese company JMEV in the state.
The initiative is the result of ongoing negotiations for over a month, intensified during a mission led by Governor Jorginho Mello (PL) to Asia.
Founded in 2015, Jiangling Motors Electric Vehicle (JMEV) already produces about 150,000 electric cars each year.
-
50 viaducts, 4 tunnels, 28 bridges, and 40 kilometers of bike paths: BR-262 in Espírito Santo will receive 8.6 billion reais for the largest engineering project in the state’s history, inspired by the Immigrant Highway in São Paulo.
-
Brazil produces too much clean energy and doesn’t know what to do with it: over 20% of solar and wind capacity was wasted in 2025 while investors flee and 509 renewable generation projects were abandoned in the last year.
-
Piauí will produce a new fuel that replaces diesel without needing to change anything in the truck’s engine and reduces pollutant gas emissions by half: truck drivers from all over the Northeast are already celebrating the news that will arrive later this decade.
-
A new Brazilian shopping center worth R$ 400 million will be built in an area equivalent to more than 4 football fields, featuring 90 stores, 5 cinemas, a supermarket, a college, and parking for 1,700 cars, potentially generating 3,000 jobs.
These vehicles, with an average range of about 200 km, are designed to reach affordable prices, estimated between R$ 70,000 and R$ 80,000, a price that, if confirmed, would be cheaper than the Renault Kwid – a combustion model currently considered the cheapest car in the Brazilian market.
JMEV is evaluating the format of its entry into Brazil.
Two possibilities are under consideration: initially assembling vehicles locally or setting up a complete production line.
The Chinese company is also seeking to diversify its international business due to its already established presence in the domestic market.
State Deputy Fernando Krelling (MDB), involved in the discussions, highlighted that Santa Catarina faces competition from São Paulo, Rio de Janeiro, and Minas Gerais in attracting investment.
According to his analysis, the potential of Santa Catarina, which encompasses technological innovation, a structured metal-mechanical industry, and efficient logistics, gives the state a competitive advantage.
Tax Incentives and Strategic Logistics
Existing programs in Santa Catarina, such as Prodec (Cooperative Development Program) and Pró-Emprego, have been put on the table as part of the incentive package.
They offer tax reductions and facilitation in job creation for economic expansion projects.
For its part, the strategic location of Santa Catarina also serves as an advantage in attracting JMEV.
Deputy Krelling pointed out that the northern region of the state, especially near the port of Itapoá, would stand out as the main candidate to receive the future facility.
The port recently inaugurated a direct route between South America and Asia, with terminals in Chinese territory, enhancing logistical advantages for companies involved in import and export.
Environmental Licensing and Production Chain
In addition to tax incentives, the Santa Catarina government mentioned the possibility of expediting environmental licenses as part of an effort to reduce bureaucratic barriers.
However, the director of InvestSC, Rodrigo Prisco Paraíso, emphasized that factors such as the supply chain and the qualification of the local workforce are also considered fundamental to convince JMEV.
Regarding these aspects, it can be noted that Santa Catarina has a recognized history in technical education and industrial training, although specific information about training centers focused on electric vehicles has not been disclosed.
Ongoing Negotiations with JMEV
So far, there has been no public confirmation of the choice between assembly or verticalized production — nor any definitive investment amounts.
InvestSC is currently awaiting a formal response from JMEV to adjust details about the benefits package.
Sources linked to the process indicate that the negotiations involve timelines, tax incentives, and development of the necessary infrastructure, but there is no official forecast for the implementation schedule or exact amounts to be applied.
No public information has been found regarding a defined schedule or expected dates for the start of operations in Brazil.
Expansion of the Electric Car Market in Brazil
The electric vehicle market in Brazil has been gaining momentum in recent years, although it still represents a small share of the total fleet.
It is estimated that, by May 2025, electrified vehicles (including hybrids and plug-ins) accounted for less than 5% of monthly sales in the country.
JMEV’s interest in offering popular vehicles reinforces the prospect of increased consumption in a segment that has so far been aimed at more expensive niches.
Renault models, such as the electric Kwid, are still in the adaptation phase to the national market and do not have precise pricing estimates.
Therefore, the arrival of a brand focused on electric mobility and with an economic proposition could boost the sector.
Economic Impact and Job Creation
The establishment of an electric vehicle factory is likely to lead to significant economic movement in the chosen area.
Although there are no official numbers on the volume of jobs that would be created, similar projects involving factories of this size typically generate hundreds to thousands of direct and indirect jobs, in addition to attracting suppliers to the production chain.
The expected economic return also includes the revitalization of local industrial sectors, an increase in the logistics sector, and an expansion of tax revenue in the medium and long term, especially if the strategy of assembly and complete production is confirmed.
Next Steps in the Automaker’s Decision
In the coming weeks, InvestSC is awaiting a formal statement from JMEV.
After that, the Santa Catarina government will design and formalize the package of incentives and benefits, in light of the company’s conditions.
The estimated timeline for signing any memorandum of understanding or intent has not yet been disclosed.
Meanwhile, other federative units remain attentive to the outcome of these negotiations, given its relevance for national automotive development and for strengthening the electric vehicle sector in strategic regions.
The project in Santa Catarina aligns with the growing goal of integrating affordable electric cars into Brazil.
The country still needs to reduce tax and technological barriers to broaden the range of economic options in the sustainable automotive market — a challenge that, if overcome, could transform the profile of national fleets.
Do you believe that the arrival of a JMEV factory in Santa Catarina could actually lower the prices of electric cars in Brazil and attract greater public adoption?
-
Uma pessoa reagiu a isso.