Renault revs up growth plan for Brazil with new investment

Brazil is drawing big-ticket investments in its automotive sector. A few days after Nissan opened a new plant in the country, Renault has announced a five-year investment programme for its operations in Brazil.

On April 17, Renault Group chairman and chief executive Carlos Ghosn announced a new investment cycle in Brazil in the amount of R$ 500 million (£133 million) spread over the 2014-2019 period. This investment will be channelled into the development of two new cars at Renault’s plant in Curitiba.

“Since 2011, Brazil has been the brand’s second largest market after France and it is a priority in the Group’s global growth strategy,” said Ghosn. Renault Brazil successfully completed its previous investment plan and is now pursuing the ambition of expanding its domestic market share.”

Renault has now been producing in Brazil for 15 years. With a market share of 6.7 percent at end-March 2014, Renault is reaffirming its position as the fifth largest carmaker in the country. The Group is targeting an 8 percent market share by 2016.

Thanks to its previous investment plan of R$ 1.5 billion (£398 million), Renault strengthened its growth strategy in Brazil based on three pillars:

• Production capacity increase from 280,000 to 380,000 annual units at the Curitiba Ayrton Senna industrial complex
• Product range update with two brand-new models launched in 2013: Master and New Logan
• Dealership network expansion with 100 new stores opened in the last three years, totalling 275 sales outlets.

The French carmaker has also announced the implementation of a new national parts distribution centre in the city of Quatro Barras – State of Paraná – with start of operations planned for the second half of 2015. This new centre represents an investment of R$ 240 million (£64 million) over the next 10 years and the creation of 250 jobs. Daily operations would include movement of 120 heavy-duty trucks.

In addition to meeting the needs of Renault dealerships nationwide, the new distribution centre will also supply parts and components to Argentina, Chile, Colombia, Mexico, Paraguay, Peru, Uruguay, Venezuela, Central America, South Africa and France.