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Randoncorp grows by embracing the ESG agenda, aligning technology with impact

The company bet on greener production and on innovations to reduce fuel consumption in vehicles

Randoncorp factory: the company invested over R$200 million in innovation (Germano Lüders/Divulgação)

Randoncorp factory: the company invested over R$200 million in innovation (Germano Lüders/Divulgação)

Leo Branco
Leo Branco

Editor de Negócios e Carreira

Publicado em 1 de outubro de 2025 às 11h36.

Randoncorp is a good example of achieving a balance between sustainability and financial gains. One of the most prominent car parts manufacturers in the world, the group based in Caxias do Sul, in the Serra Gaúcha, generated R$11.9 billion in 2024.

In the period, net profits reached 691 million Brazilian reais. To a large extent, the result was due to innovations tied to the ESG agenda. For instance, a new electric track system is capable of reusing leftover energy from braking and descents to generate traction in ascents and overtaking.

Fuel savings can reach up to 25%. “This is an example of how we have invested in technologies with positive environmental impact and market potential”, says the president, Daniel Randon.

Simultaneously, the company invested in the use of materials such as niobium in coating car parts to make them lighter – and, as such, helping the vehicle to burn less fuel.

Global Presence

Currently, 44.4% of current income comes from products launched in the last 5 years. In the period, Randoncorp has invested over R$200 million reais in innovation. A significant portion came from the Hercílio Randon Institute, which the company financed. From there, the company secures 70 patents each year.

Amidst all this, Randoncorp has amplified its global presence. Over the last few years, international profits have increased from 15% to 34% of the total.

Now, one of the targets is the U.S., where the group already acts with the brands Hercules (tools), Frasle Mobility (car parts), and EXM (axis). The tariffs on imports applied by Trump can anticipate investments in the country.

“We are still competitive with exports in Brazil, but we are always evaluating if there is something else for us to improve our competitiveness with more production in the United States on top of what we already produce”, says Randon.

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