WOLFSBURG (dpa-AFX) - Volkswagen AG (VKW.L, VLKAF.PK, VOW.BE) said on Tuesday that it is investing one billion euros in South America by 2026, as part of its efforts to make a significant growth in the region with a major product offensive to meet growing demand.
The South American automotive market is expected to grow 11 percent a year until 2030, making it one of the fastest growing markets in the world.
By 2027, the auto major plans to grow by 40 percent in Brazil, the region's largest market.
The company expects the transformation towards pure e-drives in Brazil to be less dynamic than in Europe - the overall share of pure BEV vehicles in 2033 in the Brazilian market is estimated at around 4 percent. However Volkswagen aims to grow faster than the market in the BEV segment.
Until the market is fully electrified, Volkswagen will rely on alternative drives. For example, all new models produced in the region will continue to be able to run on 100 percent biofuel.
Volkswagen is Brazil's largest auto maker, having produced a total of 25 million vehicles in 70 years, four million of which were exported. The company manufactures the Polo, Virtus, Nivus, Taos and T-Cross models, among others, at four plants in the country.
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