Should Corveta Motors Enter Brazil?

Corveta Motors is a automotive company with €1720 M of revenue in its home market of Europe. Growth at home has slowed to low single digits and the board is looking abroad.

Brazil has been identified as the priority candidate. Early desk research suggests:

• Addressable market of roughly €2858 M, growing 10% a year
• The largest incumbent holds about 40% share, with a long tail of local players
• Entry would require an estimated €334 M over three years
• Regulatory approval takes 9-18 months, and local partnership requirements apply to foreign entrants

The strategy team's paper projects 7% market share within five years. The CFO has asked whether that projection is credible and whether this is the best use of €334 M.