JAC Motors – How a Chinese Car Manufacturer Successfully Approached the Brazilian Market

Abstract

Purpose

According to data released by the Brazilian Institute of Geography and Statistics (Ernst & Young, 2010), the Brazilian middle class is represented by approximately 100 million people. Moreover, according to the Brazilian Association of Importers and Manufactures of Motor Vehicle Companies (ABEIFA, 2015), Brazil was ranked fourth in the world in the ranking of major automobile consumers. This is undoubtedly a highly attractive market for world producers in this sector. However, the Brazilian automobile market has some specific features that require a very prudent operation. This case aims to investigate how those idiosyncrasies were approached by the Chinese car manufacturer JAC Motors, which in addition to not having previous experience in that market, also presented a negative country of origin image.

Methodology/approach

We rely on a case study method to better understand how the executives of this Chinese firm approached the Brazilian market.

Findings

Pulling and pushing factors are the basis of the adaptation process followed by the car manufacturer to better serve the identified idiosyncrasies. It was not only China that pushed JAC Motors to go abroad, but also Brazil that attracted (pulled) the car manufacturer’s investment. Additionally, there is evidence of pushing factors on the side of JAC’s strategy and pulling factors on the side of a Brazilian partner.

Research limitations/implications

Internationalisation decision-making processes often result from a combination of factors which gain a specific ‘momentum’ that result in an extraordinary occasion that provides a unique opportunity to invest abroad.

Originality/value

The uniqueness of the opportunity to invest abroad is the result of the alignment of pulling and pushing factors, in the country, the company and at the decision-making level.

Citation

Silva, S.C.e. (2016), "JAC Motors – How a Chinese Car Manufacturer Successfully Approached the Brazilian Market", The Challenge of Bric Multinationals (Progress in International Business Research, Vol. 11), Emerald Group Publishing Limited, Leeds, pp. 653-672. https://doi.org/10.1108/S1745-886220160000011031