The mark Volkswagen wants to drive its growth in South America with an investment of billions and many new models. The carmaker announced on Tuesday that it will invest one billion euros in the development of ethanol-based internal combustion engines and new business models such as car subscriptions by 2026.
In the next two years, 15 new models will come onto the market – including electric cars such as the ID.4 and combustion models that can be fully fueled with sustainable biofuel. The engines developed in Europe are used in Volkswagen’s newly opened development center Brazil adjusted.
In the region, the switch to e-cars is slower than expected. For Brazil, it is forecast that the market share of pure battery electric vehicles will be around four percent in 2033. In Europe, on the other hand, from 2035 all new cars must have a CO2-free drive.
Market is expected to grow by 11 percent
Overall, the South American automotive market is expected to grow by 11 percent annually through 2030, making it one of the fastest growing markets in the world, as VW further explained. By 2027, the company plans to grow by 40 percent in the largest single market, Brazil, where Volkswagen has been present for 70 years.
“As a fast-growing car market, South America is of strategic importance for Volkswagen,” explained brand boss Thomas Schäfer. After years of losses, the carmaker has turned the corner in recent years. The task now is to further reduce costs and at the same time to implement the product offensive.
Volkswagen has been present in South America for over 65 years and has six plants and more than 750 sales outlets in the 29 markets of South America, Central America and the Caribbean. With the launch of 20 models, the largest product offensive in the history of the Volkswagen brand in South America has been underway since 2017. Two important models are the Taos, the first SUV produced in Argentina, and the Nivus, which was developed entirely in Brazil and is the first model developed in South America to be produced and sold in Europe.
In electromobility, the Group is currently in a state of upheaval on all fronts. In Germany, the group is currently relaunching its charging division. The start of the energy and charging division Elli failed
. The new boss Giovanni Palazzo wants to do almost everything differently than his predecessor – and build the next software company under the VW roof.