Amsia Motors, a joint venture between China and Saudi Arabia, signed an initial plan on Thursday to invest $457 million in Brazil’s first plant in Sergipe, Brazil, for the development of hybrid and electric vehicles.

Amys is a company run by its parent company Saudi Arabia’s Eram Group in cooperation with German, British, Canadian and Chinese automakers. Amys will be the first manufacturer to set up a factory in Brazil to produce electric vehicles.

Although most of the automotive industry in Brazil is concentrated in the southeast region, in recent years, the impoverished northeast region has attracted the attention of many car manufacturers due to strong economic development. It is reported that Fiat has already started construction of a second factory in Brazil in Pernambuco, and JAC and Ford have also built factories in Bahia State.

The main investor of the Amish company, Prince Faisal Al-Saud, arrived in Brazil at the end of the week and together with the president of the company, Mustafa Ahmed, confirmed the details of the investment agreement with the Sergipe state government.

The Sergipe state government hopes that the company will complete the construction of the plant within 14 months. In the end, besides the production of automobiles, the factory also produces buses and agricultural machinery.

Although Brazil lacked corresponding legislation for hybrid and electric vehicles, many investors have been deterred by the higher costs. The company still announced this plan.

Brazil is the world’s fourth largest automotive market and the seventh largest automobile manufacturer. Anfavea, the Automobile Manufacturers Association, expects that in 2013, Brazil will refresh its annual sales record for the seventh time, and its sales volume will reach 4 million.

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