French-Japanese alliance Renault-Nissan plans to double its share of the Brazilian auto-market by 2016, group president Carlos Ghosn said Saturday.
The alliance plans to build a new automobile factory and expand an existing plant in Brazil as part of efforts to boost its presence in the world’s fourth largest car market.
“We think that Brazil, the world’s fourth-largest car market, is strategic for our group not just because of the quantities sold but also because of the technological development,” the Brazilian-born, French executive said.
He says Renault-Nissan’s market share in Latin America’s biggest economy will be 13 percent by the end of 2016 compared to its current 6.5 percent.
Although the CEO did not give specifics on the investment outlay, sources with the regional government of Parana cited by the media said the cost of expanding the Renault plant in Curitiba, the state capital, could amount to close to 1.5 billion reais ($US833 million).
According to the ANFAVEA association of Brazilian auto manufacturers, the country of 190 million inhabitants has over 30 million vehicles.
At this moment, Fiat leads the market with 22.7 percent shares of sales, followed by Volkswagen’s 22.3 percent and GM with 19.8 percent.