When you combine Volkswagen’s size and its electrification plan, it is one of the more noteworthy stories of the electric revolution. But the electric vehicle revolution has primarily been focused on China, Europe, and the United States. We and others have long been calling for more electrification in South America. That is now part of Volkswagen’s public plans! So, Volkswagen is taken a clear leadership position in this major market.
First of all, it’s worth noting that Volkswagen sees this as a growth opportunity (as it should). Volkswagen wants to grow by 40 percent in Brazil by 2027! It will introduce 15 new models there, including the ID. Buzz and the ID.4, by 2025. “The Volkswagen brand aims to make significant gains in South America with a major product offensive,” Volkswagen writes.
“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. 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,” Alexander Seitz, Executive Chairman Volkswagen Group South America, adds.
Another big avenue for growth the company is using is subscriptions (pay by the month, essentially). Volkswagen expects to grow subscriptions 150% this year in Brazil, South America’s largest auto market. The ID.4 and ID. Buzz will indeed be offered as subscriptions.
Naturally, Volkswagen is not expecting Brazil or other South American countries to electrify as quickly as Europe and China have, places that have been driven by strong regulations and policies. However, it intends to be a leader in this segment. “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.”
Volkswagen produced its first cars in Brazil 70 years ago, and that production line in São Paulo was the company’s first production line outside of Germany! So, the German automaker has a long and special history in Brazil, making it unsurprising that it also wants to be a leader in the electric car revolution there. “Today, Volkswagen is Brazil’s largest automobile manufacturer, having produced a total of 25 million vehicles in 70 years, four million of which were exported. The company develops and produces the Polo, Virtus, Nivus, Taos and T-Cross models, among others, at four plants in the country and sells the cars through around 500 dealerships,” Volkswagen adds. How long until all of those cars are electric cars?
Overall, Volkswagen is investing €1 billion into its new product offensive in South America by 2026.
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