BYD, a Chinese electric vehicle and solar panel manufacturer, is to open its first factory in Brazil this year.

The move aims to optimize urban transport and reduce costs of vehicles for the country.

The comapany is set to provide non-polluting buses and taxis for large cities in Brazil.

BYD is part of a consortium to develop a car-sharing scheme in Rio, initially with a fleet of 300 electric cars.

The factory will produce batteries, solar panels and assemble electric buses, and will be operational by the middle of this year.

Rio will host the Summer Olympics next year and several transport projects are under way to prepare the city for the event.