Volkswagen aims to grow by 40% in South America through electric vehicle (EV) subscriptions and launches. The German automaker plans to target Brazil, which it claims is South America’s largest market.
“As a fast-growing car market, South America is of strategic importance to Volkswagen. In recent years, the local team has achieved the turnaround and sustainably improved profitability and competitiveness. The task now is to continue working on the cost position and, at the same time, implementing the product offensive. To this end, we are investing one billion euros in South America by 2026,” said VW CEO Thomas Schäfer.
Based on Volkswagen’s research, the South American automotive market will grow by 11% until 2030. VW plans to grow 40% in Brazil by launching 15 new electric and flex-fuel vehicles by 2025. Before the end of the year, the European carmaker will bring the Volkswagen ID.4 and ID.buzz to Brazil.
By 2026, VW will invest €1 billion in its South American growth plans. The German automaker aims to grow the battery-electric vehicle (BEV) segment in the Brazilian market with the help of car subscriptions. Over 3,000 car subscriptions were taken out at Volkswagen in 2022. VW expects to raise its car subscriptions by 150% in 2023. The ID.4 and ID. Buzz is part of Volkswagen’s growth plans in Brazil.
“With the product offensive, we are bringing extremely attractive vehicles to customers in Brazil and South America. It helps us accelerate the transformation to zero-carbon and fully networked mobility. And we are making good progress. The new Polo is already the best-selling car in Brazil. The launch of the best-selling ID.4 and the iconic ID. Buzz in the Brazilian market will bring us further momentum,” noted Alexander Seitz, the Executive Chair of Volkswagen Group South America.
Back home, Volkswagen is struggling in the electric vehicle segment, stating there is “strong customer reluctance” to switch to BEVs. The German automaker is reducing EV production in Emden Plant.