Daimler invests around 600 million euros into commercial vehicle business in Brazil

Stuttgart / São Bernardo do Campo – Daimler subsidiary Mercedes-Benz do Brasil will be investing around 600 million euros into its commercial vehicle business in Brazil over the next five years. This underlines the strong commitment of the largest manufacturer of commercial vehicles in Latin America to the Brazilian market. The investments are going into the modernization of the product lineup, digital services, and into the two biggest production plants in São Bernardo do Campo and Juiz de Fora. By 2022, both plants are going to meet highest production standards to be even more efficient and competitive. Daimler has been investing around one billion euros into its Brazilian production site since 2010.

Martin Daum, Member of the Board of Management of Daimler AG, responsible for Daimler Trucks & Daimler Buses: “Our commitment to Brazil remains strong and we continue to invest into our regional market presence. Almost the half of all commercial vehicles on Brazil’s streets are older than 20 years. These vehicles must be replaced. We will be ready when the market comes back. With investing around 600 million euros, we are preparing for the future.”

Daimler increases its market share in Brazil

Stefan Buchner, Head of Mercedes-Benz Trucks: “The Brazilian market remains weak, but our products are strong. We have been able to expand our market share in this challenging market. This shows: We know what our customers in Brazil want and offer them the right products – for Brazil and increasingly for export markets.”

Despite facing a very difficult economic situation in Brazil and a declining commercial vehicle market over the last years, Mercedes-Benz do Brasil has improved its market position in the truck and van business. Mercedes-Benz Trucks remains number one with an interim market share of 29.4 percent, an increase of 0.7 percentage points in comparison to the same period in the previous year. Mercedes-Benz Vans also increased its market share in the segment of large transporter to 32.9 percent (+7.0 % pts.; YtD 7/2017). Daimler Buses was able to defend its undisputed market leadership in Brazil, reaching a total market share of 49.1 percent (YtD 7/2017).

Mercedes-Benz do Brasil increased export by 42 percent

Mercedes-Benz products from Brazil are gaining increasing popularity in foreign markets. This year, Mercedes-Benz do Brasil already exported 10,000 commercial verhicles – an increase by 27 percent in comparison to the same period in the previous year (YtD 8/2017). Especially the truck export showed a strong growth. Around 6,000 trucks have already been exported, a growth by 42 percent. The export of bus chassis picked up by 15 percent to around 4,300 units.

Mercedes-Benz products from Brazil are particular popular in neighboring Latin American countries. But the demand for the robust commercial verhicles rises also in countries in the Middel East and North Africa – countries with similar transport requirements and road conditions.