Hyundai Motor will build its first factory in Brazil, investing $US205 million in a project expected to be completed next year.

According to Associated Press, construction of the plant in the central Brazilian state of Goais will begin this month and is expected to take 13 to 15 months - about 5,000 workers will be employed.

The plant will initially assemble heavy trucks, then workers will start assembling two different models of Hyundai cars, AP said, adding that the company has not yet decided which models it will produce at the factory.

The news agency noted that Hyundai's foray into Brazil comes even as new car and truck sales remain stalled across South America where Fiat, Volkswagen and General Motors have struggled to boost profits amid stagnant consumer demand.