The VW brand announced an investment of one billion euros until 2026 for a product offensive in South America. Before the end of the year, the electric models ID.4 and ID. Buzz will be offered in Brazil on a subscription basis.
By 2025, Volkswagen plans to launch 15 new electric and so-called flex-fuel vehicle models (internal combustion vehicles that can run on ethanol or petrol as well as any mixture of these fuels) in South America. In the medium term, VW also wants to offer hybrid vehicles in South America.
VW justifies that flex-fuel burners and hybrids play a major role in the plans with the market conditions. The company expects the transformation towards pure electric drives in Brazil to be “less dynamic than in Europe” – the total market share of pure BEV vehicles in 2033 is estimated at around four per cent. “However, Volkswagen aims to grow faster than the market in the BEV segment,” the statement says.
VW does not specify the exact number of units of ID.4 and ID. Buzz that it plans to start with, nor at what prices the vehicles will be offered and from which plants they will come. The fact that the cars will initially be offered on a subscription basis is due to the success of this business model with internal combustion vehicles: VW states that more than 3,000 car subscriptions were taken out in Brazil in 2022 – in the current year, the number is expected to increase by around 150 per cent.
It is not known what share of the billion-euro investment will go towards the sales of electric vehicles or other projects related to electric mobility. The A0 and A-segment, as well as CUV/ SUV – “the fastest growing market segment in the world” – are named as a focus of the product offensive. The A0 segment already accounts for almost 40 per cent of the South American market and will, according to the same statement, continue to grow disproportionately to the market. But this will be primarily with flex-fuel burners – greenhouse gas emissions are expected to drop by up to 80 per cent compared to petrol, according to VW.
“With the product offensive, we are bringing extremely attractive vehicles to customers in Brazil and in South America. It helps us accelerate the transformation to zero-carbon and fully networked mobility,” says Alexander Seitz, Executive Chairman Volkswagen Group South America. “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.”
Keyword: VW brings MEB models to South America