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Chinese Automaker Accelerates Production Plans in Brazil, but Dispute Involving Factory in Interior of São Paulo Could Delay Timetable and Change Company’s Industrial Strategy.
The Omoda Jaecoo in Brazil is considering starting local production in an existing unit, and the Jacareí factory, valued at R$ 63.8 million, is emerging as one of the alternatives on the table.
The plan, however, is hindered by a dispute involving the land and the possibility of a municipal auction, a scenario that could redirect the company’s industrial strategy. The brand has already gained commercial traction.
It appeared in the Top 21 of Fenabrave (National Federation of Motor Vehicle Distribution) in July and, starting in September, will strengthen the national portfolio with new engines for the Omoda 5 and Jaecoo 7 models, both imported from China.
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The goal, according to local management, is to accelerate the next phase: to assemble vehicles here.
What The Company Says
According to the website Notícias Automotivas, in an interview, Peng Hu, general director of Omoda Jaecoo in Brazil, confirmed that the Jacareí factory is on the radar.
“Jacareí is one of our options. It is not the main one, but it is one of them. We have many options, and I can’t say the exact deadline, but we want to produce in Brazil as soon as possible. It could be by the end of this year or the beginning of next year,” he stated.
The statement highlights two fronts. On one hand, the urgency to nationalize part of the portfolio and capture industrial and logistical benefits. On the other, the need to find a location with low legal and operational complexity.
Why Jacareí Entered The Map
The Jacareí factory belonged to the operation of Caoa Chery and has not operated since 2022, when local production was halted.
Since then, the unit in the Vale do Paraíba, near the Presidente Dutra Highway (BR-116), has remained idle.
The idleness and the already installed infrastructure make the location a natural alternative for Omoda Jaecoo in Brazil, especially due to the corporate connection: the Omoda and Jaecoo brands are branches of the Chinese Chery, which, in turn, maintains a partnership with the Brazilian CAOA in another line of business.
Are Omoda Jaecoo and Caoa Chery the Same Thing?
According to Peng Hu, no. “We are part of the Chery Group, which is an automotive group like Stellantis and Volkswagen. Caoa Chery is a brand, and we are another, we have different structures, different financial areas. We are good, and they are also good, but we are independent,” he said.
The statement indicates that any industrial movements of Omoda Jaecoo in Brazil could occur autonomously, even if the final option is not the Jacareí factory.
Dispute Over Land Could Change Everything
The main “handbrake” is outside the warehouse. The Jacareí City Hall is considering auctioning the Jacareí factory due to alleged non-compliance with employment generation targets assumed at the time of granting public incentives.
An official letter may have been sent to Caoa Chery, and the company reported that it has not formally received the notification.
In this context, the municipal administration mentioned the possibility of compensation of R$ 17.7 million to the company — the difference between R$ 46 million (in infrastructure works and tax incentives) and the estimated value of the property, R$ 63.8 million.
As long as uncertainty about land ownership and the future of the asset persists, Omoda Jaecoo in Brazil tends to keep alternatives on the table.
The brand admits that the Jacareí factory “is not the main” option, precisely because the legal component could delay or hinder the local production timetable.
Other Options Considered
There are industry references to a possible use of Anápolis (GO), where CAOA maintains a manufacturing park.
Market rumors circulate about new industrial partnerships there, with participation from other Chinese automakers, but there is no public confirmation of the final outline of these agreements.
Without an official announcement, the company avoids detailing specific addresses beyond the Jacareí factory, which remains an alternative among many.
What’s at Stake for the Consumer and the Network
Local assembly tends to reduce logistical timelines, increase supply predictability, and potentially improve price competitiveness in the medium term.
In parallel, nationalization allows for progress in local content index, which is relevant in incentive programs and public procurement.
For the dealer network, the measure could mean faster inventory turnover and a mix of versions more aligned with Brazilian demand.
Timeline and Next Steps
Management of Omoda Jaecoo in Brazil mentions “the end of this year or the beginning of next year” as the desired window to start local production.
This is an ambitious goal that depends on three factors: site selection, resolution of asset issues (in the case of the Jacareí factory), and obtaining the necessary licenses and certifications.
In the meantime, imports remain a pillar to sustain sales of Omoda 5 and Jaecoo 7 and consolidate the brand’s presence in the country.
Understand the Figures of the Land
The figures cited by the city hall are based on two financial landmarks. On one side, R$ 46 million invested in infrastructure and tax incentives linked to the original project.
On the other side, the estimated property value, R$ 63.8 million. The difference, R$ 17.7 million, would be the basis for a compensation if the auction goes ahead and the dispute comes to an end.
So far, it is not possible to say whether the process will advance, nor to predict dates for possible disposal of the asset.
And The Chery Brand Network in the Country?
The multiplicity of brands under the Chery umbrella in the Brazilian market requires clear operational arrangements.
Peng Hu’s statement about management independence reinforces that the production architecture can be segmented by brand, locale, or industrial partner.
The final evaluation will take into account recovery time, adaptation costs of the line, and the legal security of the chosen address — criteria that currently keep the Jacareí factory as a relevant but not exclusive option for the industrial phase of Omoda Jaecoo in Brazil.
And you, do you believe that a solution for the Jacareí factory will emerge in time for Omoda Jaecoo in Brazil to start production already “by the end of this year or the beginning of next year,” as stated by management?
Vai para Indaiatuba SP, na antiga fábrica da Toyota 🤝
A China e os Governos Chineses são a antítese positiva dos combalidos EUA. Somos favoráveis a investimentos chineses no Brasil, pois a escolarização chinesa torna as crianças adultos disciplinados, responsáveis, não dados a bobagens que consomem a memória “RAM” do cérebro humano. Os adultos são incentivados ao Mestrado e Doutorado, e o Governo Chinês dá apoio para o desenvolvimento de projetos tecnologicos e científicos arrojados, destemidos, produzindo desenvolvimento socioeconômico jamais visto em outros países. Os
Só se fotem malucos em montar uma fabrica com esse sindicato que atende essa região. Só atrasou a Chery. Por isso ajudou ir embora.
Nada a ver, tanto que o próprio pessoal da Caoa Chery falou que o Sindicato nunca foi problema. Essa é uma das regiões mais industrializadas do Brasil e de melhor localização também. Sempre cai atrair novos investimentos.
Foi a CAOA que fechou a fábrica de Jacareí para forçar os chineses a levar futuros lançamentos para a fábrica de Anápolis. Essa é a origem da briga entre CAOA e a Chery.