Michael Nikolaides, Head of Production Network and Logistics BMW Group

Following record electrified vehicle sales in Brazil last year, BMW has announced planned local production of the BMW X5 plug-in hybrid.

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BMW’s Araquari plant in Brazil also assembles the BMW X1, BMW X3 and BMW X4 as well as the BMW 3 Series for the local market.

“At the BMW Group, production follows market demand. Last year, BMW Group Brazil achieved a record of 25% share of electrified vehicles within the sales mix. In addition, the BMW X5 was the third-best model of the entire BMW line-up in Brazil. It is a logical conclusion for us to announce the production of the BMW X5 plug-in hybrid in Brazil now,” said Michael Nikolaides, Head of Production Network and Logistics at BMW Group.

“We are committed to technology openness. In this context, PHEVs are and will remain an important part of our offering. Now, for the first time, we are bringing this technology to a South American production facility. The BMW Group plant in Araquari has a flexible production line. I am proud to say that Plant Araquari will be the only one to produce ICE, PHEV, and Flex-fuel models in the whole BMW Group production network. Depending on market demand, we can get ready to produce hybrid or electric models in a short period of time. In the next step, we will build PHEV and ICE vehicles on one line.”

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Since 2014, the BMW Group has been manufacturing for the local market in Araquari, Brazil, in the state of Santa Catarina. The Araquari plant has its own Body Shop, Paint Shop, Assembly, Quality and Logistic processes.

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In December, BMW Group announced a 10% increase in production plan at the Araquari plant from 2024 to reach an annual production level of 11,000 units. In addition, BMW says the workforce is being increased and trained to produce electrified vehicles.