German carmaker Daimler is set to establish a car manufacturing plant in Brazil to produce C-Class model cars in its Mercedes-Benz brand by 2015.
As the taxes on foreign vehicles are increasing in Brazil, the auto firm finds it hard to sell imported cars in the country and has made this decision to build the plan, according to Reuters.
Initially, the plant will have the capacity of producing 20,000 vehicles per year. The location for the plant will be decided in the coming months.
Daimler spokesman was quoted by German weekly Der Spiegel that the company has not yet made any decision on this move.
"We are looking at Brazil, just like various other locations," spokesman added.
The carmaker has forayed into Brazil in 1999 and manufactured the Mercedes-Benz A-Class in Juiz de Fora plant in the country.
However, the firm has halted car production in December 2010 and converted the plant to produce commercial trucks.
