Audi to Start Brazilian Production of the A3 Sedan and Q3 Crossover from 2015

As the world’s sixth-largest economy and the largest car market in South America, Brazil is a very attractive place for automakers looking to profit from its booming auto sales. Luxury car manufacturers make no exception, with BMW already announcing a production facility in Brazil that will start running in 2014, while Mercedes-Benz is reportedly planning to build the next-generation C-Class in Brazil from 2015.

Audi is the latest to announce its production plans for Brazil, with the VW-owned luxury car manufacturer saying it will start making cars at the São José dos Pinhais site as of 2015. Audi will invest around €150 million ($200 million) to build the plant that will roll out A3 Sedans and Q3 crossovers from 2015.

Besides Brazil, Audi’s expansion includes China, where a second Audi plant will be inaugurated in Foshan later this year, and Mexico, where the carmaker wants to start producing an SUV from 2016.

All these plants are crucial for Audi’s plans to reach annual deliveries of 2 million cars as of 2020. The company is also making large investments at its production sites in Germany and Hungary to achieve that goal.

“By producing in Brazil, we will create the basis for further growth in the region,” said Audi CEO Rupert Stadler at the meeting with Brazilian President Dilma Rousseff and members of the government. The executive added that Audi will more than double the size of its dealer network in the country by the end of the decade, as it wants to be the leader of Brazil’s premium segment.

By Dan Mihalascu



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