Carmaker Stellantis revealed on Wednesday that it plans to invest 30 billion reais ($6.07 billion) in Brazil between 2025 and 2030, aiming to launch over 40 new cars and introduce hybrid-flex vehicles in the country. The announcement followed a meeting between company executives and President Luiz Inacio Lula da Silva, as the government seeks to revitalize the country’s industry.
Stellantis joins other automakers such as GM, Volkswagen, Hyundai, and Toyota, which have already announced investments in Brazil. Among Stellantis’ plans for Latin America’s largest economy is the incorporation of electrification technology into its flex-fuel models, which run on both gasoline and ethanol, according to Chief Executive Carlos Tavares.
“Our next launch, scheduled for the second half of the year, will be a hybrid vehicle,” Tavares said. Additionally, Stellantis plans to produce an electric vehicle in Brazil, although a timeline was not provided.
Tavares noted that the investment plan will adhere to Brazil’s Mover automotive program rules, which offer tax breaks to automakers investing in sustainability and aim to reduce the industry’s environmental impact. “It’s a pragmatic and clever program,” Tavares said. “This alignment of interests between Brazil’s government and our company is essential.”
Stellantis, which owns brands such as Fiat, Peugeot, and Citroen, currently operates three factories in Brazil. Last month, the company announced its acquisition of a controlling stake in Brazilian automotive services firm DPaschoal.
Brazil’s government has indicated that automakers, including Chinese firms BYD and GWM, have announced a total of 65.3 billion reais in investments in the country for the coming years. BYD has initiated the construction of its production base complex in Bahia, Brazil, repurposing old facilities for suppliers to produce new car parts.
Yesterday, Japanese auto giant Toyota revealed its intention to invest 11 billion reais ($2.22 billion) in Brazil, marking its largest investment plan in the country to date. The investment will be made in two parts, with the first phase expected to be completed by 2026 and the second by 2030.
Last month South Korean automaker Hyundai has revealed plans for a substantial $1.1 billion investment in Brazil, focusing on eco-friendly vehicles, during a meeting with President Luiz Inácio Lula da Silva at the Planalto Palace.
