BMW taking advantage of growth in Brazil
The Brazilian car market is currently experiencing a strong growth period. Experts are so confident in the country’s automotive industry that they are predicting that it will be the number three industry in the world by 2015, behind China and the United States.
BMW are ready to take full advantage. The world’s number one luxury car producer is planning to create a plant in Brazil, worth $261 million. Audi have been performing particularly well in Brazil. BMW hope to counter their German rivals.
It has been confirmed that the factory will be built in Santa Catarina, a Southern state in Brazil. There will be a total of 30,000 units produced yearly from the factory, with many primed for exports. Ian Roberston, the BMW Head of Sales and marketing for BMW Brazil was on hand to state the company’s immediate goals in Brazil. “The investment plan has been aligned with new automobile industry incentives and is the result of difficult work with Brazilian authorities during the last six months. The goal is to reach 30,000 cars and to keep growing. If there is more demand, then there will be more production.”
It makes complete sense for foreign car makers to explore the Brazilian market right now. The European market is slowing down thanks to the Euro Zone crisis. Growth in the world’s largest auto market, China, is slowing down a great deal. Audi are the undisputed number in China and are looking to make a similar impact in Americas too. Already they have built a plant in Mexico, expanding their operations a great deal in the region.
Demand for luxury vehicles is expected to increase a great deal in Brazil thanks to the World Cup in 2014. BMW’s sales from January to September have reached 1.11 million with an 8.6 per cent increase, meaning they are still the world’s number one luxury brand. They are looking at strategies at ways of staying ahead of the likes of Mercedes and Audi.
At the moment, BMW are the number one luxury car brand in Brazil, selling between 10,000 and 12,000 vehicles every year. The Brazilian Government believes that around $22 billion in investment from the automotive sector will be dished out over the next three years.