Admin I Tuesday, July 04, 2023
BERLIN – German carmaker Volkswagen AG said on Tuesday that it is investing €1 billion in South America by 2026, as part of its efforts to achieve significant growth in the region.
The South American automotive market is expected to grow 11% a year until 2030, making it one of the fastest-growing markets in the world.
By 2027, the auto major plans to grow by 40% in Brazil, the region’s largest market.
The company expects the transformation towards pure e-drives in Brazil to be less dynamic than in Europe – the overall share of pure Battery Electric Vehicles (BEV) in 2033 in the Brazilian market is estimated at around 4%.
However Volkswagen aims to grow faster than the market in the BEV segment. Until the market is fully electrified, Volkswagen will rely on alternative drives.
For example, all new models produced in the region will continue to be able to run on 100% biofuel.
Volkswagen is Brazil’s largest carmaker, having produced a total of 25 million vehicles in 70 years, 4 million of which were exported.
The company manufactures the Polo, Virtus, Nivus, Taos and T-Cross models, among others, at four plants in the country.
