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The BMW Group is advancing its operations in Brazil, focusing on the electrification of its Araquari plant. This strategic move includes the local production of the BMW X5, marking it as the first premium plug-in hybrid vehicle to be assembled in South America. The expansion at the Araquari plant highlights BMW’s commitment to adapt and evolve with the increasing market demand for electrified vehicles in Brazil, following a significant achievement in sales last year.
Key Highlights:
- First premium plug-in hybrid in South America: The BMW X5 begins local production.
- Record sales performance: Electrified vehicles made up 25% of BMW’s total sales mix in Brazil last year.
- Increased production capacity: Plant Araquari’s annual output is set to increase by 10% in 2024.
- Versatile production capabilities: The plant is equipped to produce ICE, PHEV, and Flex-fuel models, unique within the BMW Group.
“At the BMW Group, production follows market demand. Last year, BMW Group Brazil achieved a record of 25% share of electrified vehicles within the sales mix. In addition, the BMW X5 was the third-best model of the entire BMW line-up in Brazil. It is a logical conclusion for us to announce the production of the BMW X5 plug-in hybrid in Brazil now,” stated Michael Nikolaides, Head of Production Network and Logistics at BMW Group. “We are committed to technology openness. In this context, PHEVs are and will remain an important part of our offering. Now, for the first time, we are bringing this technology to a South American production facility. The BMW Group plant in Araquari has a flexible production line. I am proud to say that Plant Araquari will be the only one to produce ICE, PHEV, and Flex-fuel models in the whole BMW Group production network. Depending on market demand, we can get ready to produce hybrid or electric models in a short period of time. In the next step, we will build PHEV and ICE vehicles on one line.”
Since its inception in 2014, the Araquari facility has been integral to BMW’s strategy in Brazil. Located in the state of Santa Catarina, the plant encompasses a Body Shop, Paint Shop, Assembly, and Quality and Logistic processes, along with a BMW Group Engineering Office. The planned increase in production and workforce underscores BMW’s dedication to fostering a robust manufacturing hub capable of producing a diverse range of vehicle models, responding dynamically to global and local automotive trends.
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