BMW has been making cars in Brazil for a decade at its plant in Araquari plant in Santa Clarita. In the 10 years that have passed, it’s put together over 100,000 vehicles. It currently produces the X1, 3 Series, X3, and X4, but the X5 just joined them on the assembly line. The first vehicle was completed on November 29. It’s not just any version of the large luxury SUV. We’re looking at the xDrive50e, the first plug-in hybrid country made in the South American country.

Why the PHEV and not just a conventionally powered X5? One in four BMWs sold this year in Brazil is either a plug-in hybrid or purely electric. With the launch of the luxobarge with a charging port, BMW expects the share of electrified vehicles to increase. Several new models will be built there in the future. To make it happen, BMW is investing BRL 1.1 billion until 2028. At current exchange rates, that’s $184 million.

Although production of the X5 xDrive50e is just starting in Brazil, BMW is already testing the next-gen model out on the open road. Indeed, car paparazzi spied the G65 back in July as the fully electric iX5, still on the CLAR platform. The EV will likely indirectly replace the iX, an electric-only SUV that’s about to receive a mid-cycle facelift. Rumor has it there will be iX6 and iX7 models, based on the G66 X6 and G67 X7.

Meanwhile, BMW Group Plant Araquari’s goal for 2024 is to produce 11,000 cars. If it succeeds, that would be an increase of 10% compared to last year. In 2023, BMW was the best-selling luxury automaker for the sixth consecutive year. The 3 Series and X1 did the heavy lifting as the sedan and crossover were the best-selling models in their respective segments. The X5 was the third most popular BMW in Brazil, so the higher-ups made the right call to build the plug-in hybrid locally.

Source: BMW Brazil