German carmaker BMW is planning to build a new assembly plant in Brazil, marking its entry into Latin America's luxury car market.
BMW's move follows uncertainity after the Brazilian federal government begun imposing additional barriers to trade, including 30% rise in tax on imported vehicles, that would have made the German carmaker's investment plans unprofitable.
BMW chief financial officer Friedrich Eichiner was quoted by Reuters as saying: "We are on track and will now submit an investment plan with the Brazilian government."
The firm has two choices for building the new plant either in São Paulo or in the southern state of Santa Catarina.
BMW sold about 15,200 vehicles in Brazil in 2011, while it reported 74% rise in its sales per year over the past three years.
