China's Xiaomi plans to make smartphones in Brazil

Chinese smartphone maker Xiaomi has started making devices in Brazil, a senior executive said on Tuesday, in an effort to evade steep import tariffs that have pushed up prices and slowed smartphone adoption in the country.

Xiaomi also announced that it would begin selling its Redmi 2 smartphone in Brazil for 499 reais (USD 160.45) beginning on July 7.

The move brings Xiaomi's handheld devices to the first market outside Asia, where its aggressive prices and connection to customer feedback have won major market share.

Xiaomi's phones are assembled in Brazil by contract manufacturer Foxconn, which has made Apple's iPhone in the country since 2011.