Renault is celebrating 15 years since it opened its first plant in Brazil which has since built 1.8m vehicles and 2.9m engines.
The group now has three Brazilian plants, supporting an ambitious growth strategy with a target market share of 8% by 2016.
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It is the fifth best selling brand in Brazil (with a 6.5% share at the end of November 2013), and has far outpaced the market in the past three years. Brazil is now the second biggest market for Renault, and sales there grew by 24.3% in 2012, four times as fast as the market (6.1%). Brazil is also the fourth biggest car market in the world.
The three plants are all at the Ayrton Senna complex in Curitiba: a passenger car plant, a light commercial vehicle plant and an engine plant. The plants export to the whole of Latin America. Manufacturing close to markets cuts customs duties and logistics costs, and enables the automaker to be more responsive and adapt to the tastes and expectations of regional customers.
In March 2013, the Curitiba plant reopened after massive extension work, which was completed in just two months at a cost of BRL$500m (EUR193m). Production capacity at the car plant, which makes Renault Duster, Sandero, Logan and Mégane 2, has been increased from 220,000 to 320,000 units a year. Capacity at the engine plant has increased 25%, from 400,000 units a year in 2012 to 500,000 units a year in 2013.
In addition to the manufacturing plants, Renault’s growth strategy in Brazil also involves expanding the dealer network, and renewing and extending the product range. A strategy designed to achieved an ambitious target: 8% market share by 2016.
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By GlobalDataThe network has gained 100 new outlets in the past three years alone. The expansion plans continued in 2013 and should result in 40 new dealerships, which is 17% more than in 2012, making a total of 275 dealerships, covering 83% of the country.
More than 20 new models have been launched since 2011. Renault released two new products in 2013: the completely remodeled Master – which is exactly the same as the model sold in Europe, which offers more than 70 different configurations – and redesigned Logan. The product range is positioned to meet the needs of South American customers, who appreciate the models’ robust design, low running costs, interior space and three year warranties.
