Daimler announced that its subsidiary, Mercedes-Benz do Brasil, plans to invest about 600 million euros its commercial vehicle business in Brazil over the next five years.

Mercedes-Benz do Brasil will focus its investments in modernizing its products, digital services, and into production plants in São Bernardo do Campo and Juiz de Fora. Daimler has been investing around one billion euros into its Brazilian production site since 2010.

“Almost half of all commercial vehicles on Brazil’s streets are older than 20 years. These vehicles must be replaced," says Martin Daum, member of the Board of Management of Daimler AG. "We will be ready when the market comes back. With investing around 600 million euros, we are preparing for the future.”

Mercedes-Benz Trucks has 29.4% of the interim market share in Brazil, a 0.7% increase compared to the same period last year. Mercedes-Benz Vans also increased its market share in large transporters to 32.9%, up 7% from last year. Daimler Buses reached a total market share of 49.1%.

Mercedes-Benz do Brasil exported 10,000 commercial vehicles in 2017, a 27% increase compared to the same period in the previous year. Around 6,000 trucks have been exported, a growth by 42%. The export of bus chassis grew by 15% 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 vehicles rises also in countries in the Middle East and North Africa with similar transport requirements and road conditions.