RIO DE JANEIRO, BRAZIL – The German brand is celebrating its positive performance in Brazil, where it saw its sales in the first half of 2021 rise by more than 30%.
With a market share of almost 40%, BMW saw its competitors wane and despite the pandemic year posted a 43% increase in sales in 2020, instead of losing like the whole automotive sector.
Consequently, faced with such positive numbers, BMW reiterates its commitment to Brazil. The company’s CEO in the region Alexander Wehr said that “while many countries in the region will take two to three years to recover, Brazil is the only place in the world where we have already grown more than in the pre-pandemic period.”
Having invested US$1.5 billion in recent years, BMW considers Brazil a key expansion point in Latin America, where it leads the luxury segment with 35%.
Moreover, the brand has yet to harness the potential of the Araquari plant in Santa Catarina, ready since 2014 and with the capacity to produce 36,000 cars per year, 50% above the original plan.
After seven years of operation, the plant has produced only 70,000 vehicles, sending more than 10,000 (X1) to the American market.
The plant currently manufactures the 3 Series, X1, X3, and X4 models, which account for over 70% of sales, which this year alone have totaled 5,600 cars by July.
BMW is also considering the introduction of new national models, as well as expanding exports from Brazil. Wehr says there are “good chances” of seeing new hybrid and electric models coming out of Araquari.
“We have very flexible lines, we began manufacturing electric cars in only one plant in Leipzig, and today we have expanded to other places in Germany and other countries like China and Mexico. We can also make them in Brazil as soon as there is demand,” he added.
Not by chance, the brand will be presenting the new BMW iX3 next month in Munich, a model that could potentially be manufactured in Santa Catarina. Moreover, there are rumors of an electric 3-Series, probably with the same propulsion.
A future BMW iX1 is yet another possibility, as are new hybrid variants of these products, particularly targeting the use of ethanol which the automaker has offered to initiate studies related to its use.
With the future of Brazil moving toward flex hybrid, BMW has the chance to follow this evolution as an alternative for markets such as India, for example.