Renault to boost motor production in Brazil: Duster SUV demand increases

French automakers Renault SA have announced their intention to increase engine production at their Brazilian motor plant by 25% by the coming year. This expansion plan is undertaken wherein the company will increase capacity to 500,000 motors per annum from its current production limit of 400,000 motors. The company will be extending plant area by 5,000 sq meters to enable this increased production. This was announced at the inauguration of a new steel cutting line in Parana.

Renault Brazil plant was set up in 1999 at Ayrton Senna in Curitiba. Brazil is a major market for Renault Group and two of the company products Duster and Sandero have been well received in the country. In fact, Renault reported the biggest increase of any car brand in Brazil during the past six months of this hear while their market share has increased to 6.8% and the company is hopeful of reaching an 8% market share in the coming four to five years.

Besides this plant, Renault has three other plants at Curitiba. One of these plants is dedicated to passenger car production, the second is solely for light commercial vehicle production while a third plant is the engine plant. Renault’s investment in the plant follows a plan announced last year wherein it was decided to invest $244 million in expanding vehicle production in Brazil.

Read the press release below for more information.

News Release

Renault to increase engine production capacity in Brazil by 25%

Renault’s engine plant in Brazil is to increase capacity by 25% between now and 2013. It is extending surface area by 5,000 square meters to boost output to 400,000 to 500,000 units.

The plant, inaugurated in 1999 at the Ayrton Senna production site in Curitiba, has already manufactured nearly 2.5 million engines, of which 335,813 in 2011. The site has also exported over 1.2 million powerplants to South American markets.

Brazil, the Renault group’s number-two market, is a key pillar in the Group’s international expansion strategy. Thanks to the success of Duster and Sandero, Renault reported the biggest increase of any car brand in Brazil in first-half 2012, achieving record market share of 6.8%. Renault is aiming for an 8% share of the market by 2016.

Renault has three plants at Curitiba at the Ayrton Senna Complex: a passenger-car plant, a light-commercial-vehicle plant and an engine plant. Annual PC and LCV capacity is over 280,000 units. This total will be increased by 100,000 vehicles a year starting in early 2013, said Carlos Ghosn last October.