Officials from Grupo Elektra S.A. de C.V., a leading specialty retailer, consumer finance, and banking company in Latin America, said they plan to introduce FAW automobiles designed in
The FAW vehicles will come to
Michael Dunne of J.D. Power and Associates and an analyst with extensive experience in
The FAW Group is the already the largest automobile group in
As part of the new alliance, Grupo Elektra and FAW plan to build an assembly plant in
The overall investment to build the plant and purchase equipment will be approximately $150 million over the next three years and the plant will have the capacity to assemble 100,000 vehicles annually in
The vehicles' prices will be five to ten percent lower than the current average in Mexico, allowing large segments of the population that currently cannot afford to be customers of this industry to participate in that market.
Prices for the new vehicles will start at around $7000, placing them below the prices of new vehicles sold in the Mexican market by Japanese, South Korean, European, or American automakers, according to the joint announcement.
The demand for the new cars will be substantial, Grupo Elektra officials said.
Other transportation products of Grupo Elektra — like motorcycles — have sold more than 400,000 units in less than three years. Just as with the motorcycles, the company will develop an infrastructure of after-sales service for cars.
Carols Ghosn, chairman of the Renault/Nissan alliance, said in
The emerging markets in countries such as
Meanwhile, Chinese carmakers also have been moving into emerging markets even though they are not yet quite ready to compete for sales in large and sophisticated markets in Western Europe and the
Dunne, however, noted