Renault Targets Market Share of 10% in Brazil by End of 2018

Renault currently holds a market share of 7.8% in Brazil and the company foresees  growth to 8% within the first quarter of 2018. Given this positive outlook, Renault thinks it can reach 10% by the end of next year.

The plan:

To achieve this growth, Renault aims to invest in its operations across Latin America, improving its presence in the continent which, consequently, would grow its market share in Brazil. In 2016, Renault sold 354,000  cars in the region, with Brazil responsible for 43% of these sales. The goal of Renault is to boost this figure to around 600,000  cars sold per year in Latin America by 2022.

To hit this target, the company is set to invest in the SUVs segment, which has doubled in size in Brazil in the last two years, and currently represent 15% of the market.  The company expects sales of SUVs to account for  20% of all sales by the end of the decade. In Colombia, for instance, they already represent 28%.

Another argument supporting Renault’s predictions is the ever increasing percentage of the population that owns a car. In Latin America, Renault believes it will grow by 40% by 2022.

The Brazilian Market:

Renault’s leadership have shown confidence in the Brazilian economy. “We had six months of growth in our sales, which suggest a consistent upwards movement,” said Olivier Murguet, President of Renault in Latin America.  Luiz Pedrucci, who manages Renault in the country, believes that the Brazilian automobile industry will shift 2.3 million cars in 2018, representing a 6% increase over the current projection for  2017. Mr. Murguet, however, went further stating. “I believe that this calculation is too conservative.”.

The arguments used by both executives remain in line with the plan detailed by the French automaker in March 2017. Back then, the company announced that it had the 7th largest market share in the automobile industry in Brazil. Now, the company is well positioned to improve on this in the near future.

C.S.