BMW announced it will invest 200 million euro in its Brazilian plant, to increase sales in the fast-growing luxury auto market.
The plant will be situated in Santa Catarina and will offer 30,000 units annually once it begins production in 2014.
“The investment plan has been aligned with new automobile industry incentives and is the result of difficult work with Brazilian authorities during the last six months. The goal is to reach 30,000 cars and to keep growing. If there is more demand, then there will be more production,” said Ian Robertson, BMW’s head of sales and marketing.
As BMW saw its sales falling in the sluggish European market and the slowing Chinese market, it began focusing on emerging markets, such as Brazil, to boost sales. The automaker plans to increase its sales by 20% to 2 million units by 2016 and overpass Audi, which aims at manufacturing 150,000 units annually at a new facility in San Jose Chiapa, in Mexico.
Last year in March, BMW announced it plans to build a plant in Mexico, but its plans were postponed due to tax changes on imported vehicles. Brazil’s Finance Minister Guido Mantega said that automakers are expected to invest more than $22 billion in the following three years in the country, but they will also have to meet tougher safety, fuel efficiency and environmental standards to be offered additional tax breaks.