Renault completes 15 years of manufacturing in Brazil

December 19, 2013: Fifteen years ago, in December 1998, Renault opened its first plant in Brazil. Since then, Brazil has become an engine of the group’s international growth, with 1.8 million vehicles and 2.9 million engines manufactured to date. Renault’s manufacturing presence in Brazil has been constantly expanding. The Renault Group now has three Brazilian plants, supporting an ambitious growth strategy with a target market share of 8 percent by 2016.

Brazil is a strategic manufacturing base for the French carmaker which is the No. 5 brand in Brazil (with a 6.5% share of the market 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.

Renault’s position in the Brazilian market over the past 15 years is supported by a manufacturing base consisting of three plants at the Ayrton Senna complex located 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 company 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 an investment cost of R$500 million (approximately €193 million). Production capacity at the passenger-car plant, which makes Renault Duster, Sandero, Logan and Mégane 2, has been increased from 220,000 to 320,000 units a year. Production capacity at the engine plant has increased 25 percent, 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 network, and renewing and extending the product range. A strategy designed to achieved an ambitious target: 8 percent market share by 2016.

The network of dealerships is a fundamental lever for Renault’s sales growth in Brazil. The 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 percent more than in 2012, making a total of 275 dealerships, covering 83% of the country.

As for the extension and renewal of the range, more than 20 new models have been launched since 2011. Renault released two new products in 2013: the completely remodeled New Master – which is exactly the same as the model sold in Europe, which offers more than 70 different configurations – and New 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.