The electric bus is also to be sold in South America starting this year.
(Photo: VW)
Frankfurt The Volkswagen brand wants to drive its growth in South America with an investment of billions and many new models. By 2026, one billion euros will be invested in the development of ethanol-based combustion engines and new business models such as car subscriptions, the carmaker announced on Tuesday. In the next two years, 15 new models will come onto the market, including the ID.4 and ID.Buzz electric cars, which are due to be available in Brazil later this year. There are also combustion models that can be fully fueled with sustainable biofuel.
The engines developed in Europe are adapted for this in the newly opened development center of Volkswagen Brazil. The reason for this is the slower switch to electric cars in the region. For Brazil, the market share of pure battery electric vehicles is estimated at around four percent in 2033, while in Europe all new cars must have a CO2-free drive from 2035.
For Volkswagen, the sales figures in South America are like a roller coaster ride. In 2022, the number of car deliveries in the group fell below the threshold of 400,000 cars, the lowest level in at least five years. At the same time, the group wants to establish further pillars in its strategy in order to become less dependent on its main sales market, China, and still achieve its own volume targets. The Volkswagen Group plans to deliver 9.5 million vehicles in the current year, a good million more than before. The volume brands VW, Seat/Cupra and Skoda are likely to generate a large part of this growth.
For the core brand VW, it is assumed that the South American automotive market will probably grow by eleven percent annually up to 2030 and will thus be one of the fastest growing markets in the world, as the company also announced. By 2027, VW plans to grow by 40 percent in the largest single market, Brazil, where Volkswagen has been present for 70 years. Most recently, the number of car deliveries in the country was almost 280,000 vehicles. “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.
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