French carmaker Renault is in talks with authorities in Parana, Brazil, the firm said on Tuesday, amid reports it plans to increase its presence in the state where the company already owns a factory.
"Negotiations are under way with Parana state but we are not able to give any further details at this stage," a Brazil-based spokeswoman said.
The Brazilian press has reported that Renault could announce an expansion in the South American country next month.
Renault currently operates a factory in Parana capital Curitiba where it produces its own line of cars and those of its Japanese partner Nissan.
Several carmakers are looking to expand in Brazil which has developed one of the world's biggest car markets.