Renault will maintain production of ethanol-fuelled combustion vehicles in Brazil, where nine in 10 cars are equipped to run on a mixture of petrol and the biofuel as fully electric vehicles (EVs) need more government support, the head of the French carmaker's Brazil branch said on Friday.
"It still pays to invest in combustion in Brazil," top executive Ricardo Gondo said at an event, adding the industry will need more federal incentives to accelerate its EV transition.
Renault is wrapping up a $2bn reais (about R7,508,380,000) investment in the country which includes a new vehicle platform to be produced in its Parana state industrial complex. It would allow the company to produce combustion engines in the facilities and "allow electrification", Gondo said.
Renault did not say when it plans to manufacture electric cars in Brazil. The only one it sells in the country, its China-made Kwid model, sold two vehicles last month, according to the country's EV trade association.
Renault is planning to launch Brazilian sales of an electric version of its French-made Kangoo van in October, when it will also launch its Kardian combustion engine SUV, set to be manufactured locally.
While Gondo defended Renault's plans for a "transition period" for electrification in Brazil, rivals such as Chinese automakers BYD, GWM, Chery and JAC are disrupting traditional local manufactures with fully electric models sold in Brazil.
"The combustion engine will continue to see improvements in energy efficiency," Gondo said, adding the government should adopt quotas for electric cars tax-free imports to protect local manufacturers that face highly equipped products imported from China at competitive prices.
Earlier this month Renault CEO Luca de Meo warned of a "very competitive" industry in China and said it will need to "catch up fast". The company is planning to spin-off its EV unit together with partners Qualcomm and Nissan.
The government of Brazilian President Luiz Inacio Lula da Silva has placed an emphasis on fighting climate change and reversing policies enacted by his predecessor, Jair Bolsonaro.
Renault will keep making mixed ethanol combustion engines in Brazil
Image: Supplied
Renault will maintain production of ethanol-fuelled combustion vehicles in Brazil, where nine in 10 cars are equipped to run on a mixture of petrol and the biofuel as fully electric vehicles (EVs) need more government support, the head of the French carmaker's Brazil branch said on Friday.
"It still pays to invest in combustion in Brazil," top executive Ricardo Gondo said at an event, adding the industry will need more federal incentives to accelerate its EV transition.
Renault is wrapping up a $2bn reais (about R7,508,380,000) investment in the country which includes a new vehicle platform to be produced in its Parana state industrial complex. It would allow the company to produce combustion engines in the facilities and "allow electrification", Gondo said.
Renault did not say when it plans to manufacture electric cars in Brazil. The only one it sells in the country, its China-made Kwid model, sold two vehicles last month, according to the country's EV trade association.
Renault is planning to launch Brazilian sales of an electric version of its French-made Kangoo van in October, when it will also launch its Kardian combustion engine SUV, set to be manufactured locally.
While Gondo defended Renault's plans for a "transition period" for electrification in Brazil, rivals such as Chinese automakers BYD, GWM, Chery and JAC are disrupting traditional local manufactures with fully electric models sold in Brazil.
"The combustion engine will continue to see improvements in energy efficiency," Gondo said, adding the government should adopt quotas for electric cars tax-free imports to protect local manufacturers that face highly equipped products imported from China at competitive prices.
Earlier this month Renault CEO Luca de Meo warned of a "very competitive" industry in China and said it will need to "catch up fast". The company is planning to spin-off its EV unit together with partners Qualcomm and Nissan.
The government of Brazilian President Luiz Inacio Lula da Silva has placed an emphasis on fighting climate change and reversing policies enacted by his predecessor, Jair Bolsonaro.
EU set to demand e-fuel cars have no climate impact
Toyota to ramp up EV production, aims for more than 600,000 units in 2025
Sunak delays UK petrol, diesel car ban by five years
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most read
Latest Videos