Volkswagen announces major investment in Brazil

Admin I Friday, Feb. 02, 2024

 

BAVARIA – German car making giant Volkswagen plans to invest roughly 16 billion reais (€3.3 billion) in Brazil by 2028, more than doubling Volkswagen’s plans for the market. Volkswagen had previously announced plans for investing about 7 billion reais in Brazil by 2026. Volkswagen’s Brazilian subsidiary announced the latest investment plans on Friday.

The Volkswagen Group plans to introduce 16 new models in the Brazilian market by 2028, including hybrid and all-electric vehicles, according to the company.

Volkswagen “was the brand that most grew in sales volume in 2023 and led the most important SUV and passenger car segments in Brazil last year,” said Volkswagen do Brazil chief executive Ciro Possobom.

“Now, Volkswagen reaffirms its trust in Brazil,” Possobom said.

The new models include a pick-up truck to be manufactured at the VW plant in São José dos Pinhais and a vehicle to be built entirely in Brazil at the factory in Taubaté.

A new engine for hybrid vehicles is to be manufactured at the plant in São Carlos.

Possobom said that the investments will initially be aimed at projects to de-carbonize Volkswagen’s four plants in Brazil.

According to figures from the company, Volkswagen increased its sales in Brazil last year by 29.5% to 345,039 vehicles. With a market share of 15.8%, Volkswagen do Brasil is second only to rival Stellantis’ Fiat brand in the South American country.

The VW Polo was the best-selling car in Brazil in 2023, according to Volkswagen.