After five years of operation, Peugeot Citroën do Brasil has firmly established its identity as a Brazilian car manufacturer, according to parent company PSA.
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PSA’s first pre-production vehicles rolled off the South American line at the end of 2000.
“Five years later, Peugeot Citroën do Brasil has achieved its objectives, demonstrating its ability to adapt to changing market conditions and strengthening its local identity,” PSA said in a statement.
PSA is now the fifth largest car maker in Brazil and claimed to have outperformed all other automotive newcomers – the only companies with higher market share are those who have been in the country for many decades, These rivals include GM, Fiat and Volkswagen.
These PSA group’s factory in Porto Real (Rio de Janeiro state), inaugurated in February 2001, currently produces four models: the Peugeot 206 sedan and 206 SW, and the Citroën Xsara Picasso and C3.
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By GlobalDataPorto Real began producing 1.4- and 1.6-litre petrol engines in 2002 and, this year, began making 1.6-litre flex-fuel engines exclusively for the Brazilian market. These have been available in the 206 since April and in the C3 since November. At the end of 2006, Porto Real will launch a 1.4-litre flex-fuel engine for the 206 and C3. It will gradually be offered in other models.
Taken from concept to factory floor in less than a year, these flex-fuel engines are the result of of technological development conducted primarily in Brazil.
PSA Peugeot Citroën has enjoyed strong growth in Brazil. Over the past five years, the group’s market share has more than doubled, from 2.1% to 4.9% by October 31, 2005. In the first 10 months of this year, PSA sold more than 64,000 passenger cars and light commercial vehicles, an increase of 25% from the same period last year. This is twice the growth recorded by the Brazilian vehicle market as a whole (up 9.6%), and PSA claims to be the fastest-growing car manufacturer in Brazil.
The group’s strong performance has also led to rising output at Porto Real, which has already produced more than 250,000 vehicles and over 130,000 engines. Over 400,000 Peugeot and Citroën vehicles are on the road in Brazil.
Exports of vehicles, engines and spare parts are also on the rise. For 2005, exports are forecast at $169 million, up 43% from $118 million in 2004. At present, 20% of Porto Real’s total vehicle output is exported.
As well as building cars in Brazil, PSA is working on a number of environment and vehicle safety-related projects in the country.
On of these is tests of Xsara Picasso and 206 models running on biofuels in partnership with Sao Paolo University’s clean energy development laboratory. The two vehicles have already covered 160,000 kilometres (100,000 miles) on a mixture of 30% soy biodiesel and 70% petroleum diesel sold locally. The second stage of the experiment, planned for early 2006, calls for the use of biodiesel from other oil seeds.
