JACAREI, Brazil—Chery Automobile Co., one of China's biggest auto makers, on Tuesday began construction of its first factory in Brazil in hopes of expanding its share in the world's fourth-largest auto market. Its factory, located in the city of Jacarei about 100 kilometers from Sao Paulo, will begin producing about 50,000 vehicles a year by the end of 2013 and expand to expand to as many as 170,000 vehicles a year, Luis Curi, chief executive of the company's Brazilian unit, said Tuesday. The Jacarei plant will lead to the arrival of about 20 Chinese parts suppliers, as well as local...