The 50 percent increase in market share in the booming Brazilian market has made BMW look at their future expansion strategy. According to Reuters, BMW is considering the possibility of a local assembly plant that will better manage the market demands.
BMW reported last year 10,000 units sold, but the pace of growth far surpasses that in BMW’s more mature markets.
“For us, it is really about the significance and prominence of the market, since we believe it has a big future. The development of Brazil over the past ten years is impressive,” BMW production chief Frank-Peter Arndt told Reuters at the company’s annual news conference on Tuesday.
Initially, the Brazil plant, if built,would be a “complete knock-down” (CKD) assembly plant, where components are shipped from Germany or other primary component manufacturing plants, and assembled locally. BMW currently operates similar plants in Egypt, India, Indonesia, Malaysia, Russia, and Thailand. India is also reporting on the possibility of adding a second plant.
According to Arndt, when production volume reaches 100,000 units, BMW begins to consider establishing full local production and component sourcing.