After a clear increase in sales
VW increases billions in investments in Brazil
February 2, 2024, 3:07 p.m
VW has been active in Brazil for 70 years. Last year, the car manufacturer announced that it would once again invest heavily in its locations there. This sum is expected to rise sharply again. The aim is also to develop innovative projects.
The car manufacturer Volkswagen is increasing its investments in Brazil. The company is increasing its already planned investments from 7 billion reais by 2026 to a total of 16 billion reais (around three billion euros) by 2028, Volkswagen do Brasil announced. By 2028, the group will introduce 16 new models, including hybrid and electric vehicles.
“Volkswagen do Brasil looks back on 70 successful years: We were the brand that increased its sales the most in 2023 and are the leader in the most important SUV and passenger car segments in Brazil,” said CEO Ciro Possobom. “Now Volkswagen is underlining its confidence in Brazil and is increasing its investments to more than double.”
New engine for hybrid vehicles
Among the new models is a pickup truck to be manufactured at the VW factory in São José dos Pinhais and a fully Brazilian vehicle to be built at the factory in Taubaté. A new engine for hybrid vehicles is to be manufactured at the factory in São Carlos. “The additional financial resources are aimed at the development and production of innovative projects focused on decarbonization at Volkswagen do Brasil’s four plants,” Possobom said.
According to its own information, the company increased its sales in Brazil last year by 29.5 percent to 345,039 vehicles. With a market share of 15.8 percent, Volkswagen do Brasil is second only to Fiat in the South American country. The VW Polo was the best-selling car in Brazil in 2023.