Specifically, Renault will begin producing Captur, a sports utility vehicle, and compact car, Kwid. Production will take place in the country's Southern region in the capital of the state of Parana, Curitiba. The news was announced last Thursday by Renault-Nissan Alliance CEO, Carlos Ghosn.
In front of reporters in the city that will produce the new models, Ghosn said that he "sees the Brazilian market stabilizing after steep sales reductions amid the country's worst recession in decades."
According to association and manufacturer data, Renault ranked sixth among automotive manufacturers in 2015 having sold 180,532 vehicles, a -23.7% drop from the previous year. In Brazil in 2015, Fiat, Chevrolet, Volkswagen, Ford and Hyundai led manufactuers. Renault held the same position in 2014 when it sold 236,721 vehicles.
Among the top ten models sold in 2015, the compact car, Renault Sandero, held the eighth position with 77,838 vehicles sold, a decrease of -22.5% from the year before. Despite the decrease, the model moved up a spot from 2014 when 95,385 Sanderos were sold across Brazil.
Captur and Kwid models are expected to be with Brazilian car dealerships by 2017. Renault is betting on these models to help it increase its market share of 6.7% in the country. More specifically, the Brazilian-born Ghosn said he is targeting 8 percent share with long term goals of 10 percent.
Regarding the Brazilian auto market, Ghosn said:
"Right now we see Brazil's auto market recovery with great hope. I don't think anybody believes the Brazilian market will stay around 2 million vehicles (of annual sales)."
As recently as 2009, Renault had less than 4% of the market. After adding to its capacity and releasing popular new models, the company's share grew. In particular, the company's SUV, Duster, was able to take on other popular SUV models, such as the Ford EcoSport.
Overall, auto sales in the South American giant have been cut in half since peaking in 2012. The main culprit is a gripping economic crisis that has led to high inflation, low consumer confidence and high unemployment. Furthermore, governmental and industrial policies have hurt the industry. The final cost of a car in Brazil may be composed of up to 50% in taxes.
Auto manufacturers are hoping the market has stabilized and growth is in store in the near future.
According to Ghosn Brazil has the potential to sell 3.5 million to 4 million cars a year.
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Read more at Business Insider Renault to Produce Two New Models in Brazil
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