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New Investment by BMW in the Brazilian Automotive Market: The German Brand Announces a Billion-Dollar Mega Investment and Prepares to Produce Its First Plug-in Hybrid SUV in Brazil, Reinforcing Its Commitment to Innovation and Sustainability in the National Market.
In 2025, BMW will celebrate 30 years since its arrival in Brazil. Based on this, the company maintains its production facility in the country, located in the city of Araquari, Santa Catarina. Last Wednesday (2), the facility celebrated ten years in operation. As part of the celebrations, BMW announced an important new development: a mega investment of R$ 1.1 billion.
Understand Where BMW’s New Investment Will Be Redirected
According to the brand, Brazil will receive investments of R$ 1.1 billion. Therefore, BMW’s new investment will take place over the period from 2025 to 2028. Thus, the focus is to bring greater digital technological capacity to the country, according to João Veloso, BMW’s Communications Director for Latin America. The announcement was made during a meeting of company executives and journalists last Friday (5) at the Brazilian branch’s office in São Paulo.
This mega investment will be used to modernize the Araquari factory. Currently, the plant manufactures 11,000 vehicles per year. BMW’s new investment will also serve for hiring and developing personnel, as stated by Milan Nedeljkovic, a member of the brand’s board of directors.
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Moreover, the company aims to strengthen its local engineering area and develop new technologies. This way, it can contribute to the group’s global activities, as stated by Nedeljkovic and Maru Escobedo, CEO of BMW Group for Latin America.
Executives highlighted that BMW will focus on innovations in decarbonization. To this end, the brand plans to make a mega investment in electrified vehicles. In the same vein, the brand reaffirmed its commitment to producing the new BMW X5 at the Araquari factory, soon.
BMW Mega Investment Will Bring Production of the Plug-in Hybrid SUV X5
According to the company, in a few weeks the BMW X5 PHEV, a plug-in hybrid SUV, will begin production at the Santa Catarina factory. According to Nedeljkovic, the company is starting a new era of producing electrified models in Brazil. The BMW X5 PHEV will be the first plug-in hybrid model produced in South America. Production was previously announced in April, but without disclosing a start date.
According to BMW, the choice of the X5 is linked to its good sales volume in Brazil. Currently, the Santa Catarina unit already produces the BMW 3 Series sedan and the X1, X3, and X4 SUVs, which are sales leaders in their segments, according to the manufacturer’s information. According to the company, these models ensure sales leadership among premium brands in Brazil.
BMW’s new investment also includes new software and technologies necessary for the upcoming BMW cars. The development of these innovations has already yielded results, such as a system that allows the driver to use their smartphone as a digital key for the vehicles.
Other Investments by BMW in Brazil
Before this new mega investment, BMW had already invested R$ 1.8 billion in Brazil. This amount was spread over the 10 years of operation of the plant in Santa Catarina. There, the company has 700 direct employees and has already manufactured 100,000 vehicles.
The Araquari factory has a capacity of 32,000 vehicles per year; however, the current demand has led BMW to work with production of only 11,000 cars in 2024.
BMW has no plans to turn this factory into an export hub, but understands the importance of the unit for its fleet electrification plans throughout Latin America. According to Escobedo, hybrids are important, and electrification is already happening. The market is adjusting, and the company is as well.
Que venha com certeza e vontade de produção total dos componentes integrados dos motores mwm e dos equipamentos dos modelos que foram anunciados! E muito mais!!