BMW has announced plans to invest 200 million euro ($261 million by current exchange rates) in a facility in Brazil. The move is an effort to counter Audi in one of the world’s quickest-growing markets.
BMW says it plans to produces upwards of 30,000 units a year at the Santa Catarina factory by 2014, though that number could swell significantly if the automaker sees the demand. Audi, meanwhile is set to build 150,000 vehicles per year at its location in San Jose Chiapa, Mexico. Reports indicate that automakers are looking outside of the contracting European and slowing Chinese markets in search of more sales.
Ian Robertson, member of the BMW board said, “Brazil is a market with tremendous potential for the future for the BMW Group. For that reason, we are strengthening our long-term commitment to this country.”
BMW has focused on emerging markets to help step up sales by 20 percent by 2016. The automaker originally announced its plans to build construct a facility in Brazil in 2011, but the move was postponed due to shifts in the country’s tax codes. Now Brazil is offering new tax brakes to any carmaker that aims to invest the area.