German automaker Volkswagen has announced plans to invest an additional 9 billion reais ($1.83 billion) in its Brazilian operations over the next five years. This substantial investment aims to boost the company's presence in the Brazilian market and expand its product lineup. The new investment exceeds the initial 2022-2028 Brazil investment plan of 7 billion reais, bringing the total to 16 billion reais.
As part of this increased investment, Volkswagen intends to introduce 16 new models in the Brazilian market. This expanded lineup includes hybrid and electric vehicles, marking a strategic move towards sustainable and eco-friendly mobility solutions. Among the new models, Volkswagen plans to manufacture its first Brazil-made hybrids, a 100% electric model, and a pick-up truck.
Ciro Possobom, Chief Executive of Volkswagen Brazil, expressed the company's confidence in the Brazilian market, emphasizing the decision to more than double their investments. The pick-up truck, one of the new models, is slated for production in the state of Parana, while the remaining three additional models and a new hybrid engine will be manufactured in factories around Sao Paulo state.
In addition to the expanded product range, Volkswagen aims to enhance vehicle safety by developing an advanced driver assistance system. The investment and product expansion align with Volkswagen's strategy to capture a larger share of the Brazilian automotive market.
Volkswagen reported a notable increase in its Brazilian market share in 2023, achieving a growth of just over 2 percentage points to reach 15.8%. The company sold over 345,000 units in Brazil throughout the year, reinforcing its position in this key automotive market.