Lifan to build first automobile R&D center in Brazil

Lifan Industry (Group) Co. and Brazilian auto importer, Effa Group will invest $70 million in Brazil to build Lifan's first overseas automotive research and development center outside of China.

The center will be used to develop compact vehicles and new-energy motors, and will be located in between Sao Paulo and Campinas.

Chinese and South Korean automakers are working actively to develop in the Brazilian market, the world's fourth-largest car market, with Hyundai Motor Co. recently beginning works on their first Brazilian plant.

The influxes of Chinese and South Korean cars have helped whittle away market share from US and European companies, that historically have dominated the market.

Fiat, Volkswagen AG General Motors and Ford Motor Co. together account for about 80 percent of Brazil's sales volume.

Lifan and Effa, sold 5,082 vehicles in Brazil in 2010, some of which were manufactured in Uruguay.