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Jialing & Zongshen Expand Rapidly on the Brazilian Market Author: chinamotor - Source:CHINAMOTOR     Font size: A A A Under the influence of the global financial crisis, many countries have adopted incentive policies for motorcycle sales. For example, China launched the motorcycle subsidy programmes in the rural areas. Besides these, the motorcycle consuming giant Brazil has also launched a motorcycle subsidy program which exempts the social security tax for motorcycles with a displacement of less than 150cc and introduces a motorcycle purchasing plan with zero down payments. Therefore, the Board Chairman of Jialing Group Gong Bing claimed that Jialing Group would further invest USD 10 million in increasing the capacity of its factory in Brazil. Zuo Zongshen, the head of Zongshen Group, claimed that Zongshen Group was also busy expanding on the Brazilian market. Brazil: Purchasing Motorcycle with Zero Down Payment The head of Jialing Group's market department Pan Xiuhuan said that Brazil is a big motorcycle consuming country with an annual demand of more than 2 million motorcycles. But people mainly buy motorcycles on mortgage or buy motorcycles with purchase partners, but not through cash transactions. Gong Bing said that all industries in Brazil have showed the signs of recovery except for the motorcycle industry which was still in a sluggish state. Therefore, the Brazilian government has tried all out to stimulate the motorcycle consumption, which included the issue of a series of tax exemptions and an easy monetary policy. For example, from January 1 to March 31 of this year, the social security tax of motorcycles with a displacement of less than 150cc is exempted. Also, people can buy a motorcycle with zero down payments. The deputy Director of the Jialing Group's market Department Pan Xiuhuan, who has just finished his visit to Brazil, said that, purchasing vehicles in group is very popular in Brazil. 'Usually, a group consists of 48 persons who will buy 48 motorcycles together and pay money up in 48 months,' Pan said, 'through this method, each people only has to pay a little amount of money as the down payment and then pay the mortgage each month.' Chongqing: Jialing & Zongshen will become the Beneficiaries of Brazil's Motorcycle Incentive Policies These motorcycle incentive programmes launched by the Brazilian government brought confidence to the Chongqing motorcycle enterprises, which have experienced a significant decline in export volume. It is learned that, Jialing's factory in Brazil, which is located in Brazil's only free zone Manaus, put into production in 2007 with an expected annual output of 100,000 motorcycles. Pan Xiuhuan disclosed that, 'Jialing plans to further invest USD 10 million to expand the production capacity of its factory in Brazil.' Apart from Jialing Group, Zongshen Group, which has just purchased the Brazilian motorcycle enterprise Kasinski in July of 2009, also gave great expectations to the Brazilian market. Zuo Zongshen said, Zongshen Group planned to invest a total amount of USD 80 million in Brazil not only in purchasing the Brazilian motorcycle enterprises but also in building its own production base in Manaus. Zongshen expected to establish a 100,000-squaremetre industrial park in Manaus in 2010, which will have an annual capacity of 300,000 motorcycles. (From: www.cqnews.net, the Chongqing Daily)