Xiaomi Technology reportedly has recalled its handset team stationed in Brazil back to China due to difficulty promoting smartphones in the country and will not introduce new models in the near future.

Complicated tax systems, high logistics costs and low popularity of the Xiaomi brand in the local market have combined to hinder sales of Xiaomi's smartphones in Brazil, according to Xiaomi global vice president Hugo Barra as cited by China-based 21st Century Business Herald.

Xiaomi began to sell its smartphones in Brazil in July 2015, mostly through local e-commerce platforms and physical retail shops.

Although Xiaomi's smartphones sold in Brazil were produced locally by Foxconn Electronics, Xiaomi did not enjoy the advantage of local production as labor costs and component prices are high in the country, said the report.

Xiaomi will modify its local-production policy in Brazil to cope with ever-changing government manufacturing policies and will decide whether to produce locally or import new models in the future, Barra said.