The BMW Group has announced a strategic enhancement of its Araquari facility by commencing production of its premier plug-in hybrid model, the BMW X5, within South America. This development follows a record-breaking year for sales of electrified vehicles in Brazil.
The Araquari plant, established in 2014, will expand its existing production portfolio to include the BMW X5 plug-in hybrid, alongside the BMW X1, X3, X4, and the 3 Series. This integration marks a pioneering advancement as the Araquari site becomes the first within South America to adapt its capabilities for premium plug-in hybrid vehicle assembly.
Michael Nikolaides, Head of Production Network and Logistics at BMW Group, articulated the strategic rationale behind this expansion: “At the BMW Group, production follows market demand. Last year, BMW Group Brazil achieved a record of 25% share of electrified vehicles within the sales mix. In addition, the BMW X5 was the third-best model of the entire BMW line-up in Brazil. It is a logical conclusion for us to announce the production of the BMW X5 plug-in hybrid in Brazil now.”
Nikolaides further underscored the company’s commitment to diverse propulsion technologies: “We are committed to technology openness. In this context, PHEVs are and will remain an important part of our offering. Now, for the first time, we are bringing this technology to a South American production facility. The BMW Group plant in Araquari has a flexible production line.
“I am proud to say that Plant Araquari will be the only one to produce ICE, PHEV, and Flex-fuel models in the whole BMW Group production network. Depending on market demand, we can get ready to produce hybrid or electric models in a short period of time. In the next step, we will build PHEV and ICE vehicles on one line,” he added.
The enhancement of the Araquari plant extends beyond diversifying production to increasing its capacity. Following exceptional performance in 2023, the BMW Group declared a 10% production boost at the Araquari plant, targeting an annual output of 11,000 units from 2024. Equipped with comprehensive manufacturing processes including a Body Shop, Paint Shop, Assembly, Quality, and Logistics operations, and complemented by a BMW Group Engineering Office, the plant is poised to become a cornerstone for BMW’s electrification initiatives in the region.
This expansion reflects BMW’s global strategy to adapt its manufacturing sites to the escalating demand for electrified vehicles, ensuring flexible transitions between hybrid and fully electric models as market conditions dictate. By integrating the BMW X5 plug-in hybrid into its production spectrum, BMW Group reaffirms its commitment to fostering sustainable mobility solutions across the globe, with a special focus on dynamic markets such as Brazil.
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