Mazda Demio To Be Base Architecture for Electric Vehicle Test Project
Delta Electronics Targeting Electric Powertrain Market; Series Hybrid Test Vehicle On the Road

Volkswagen Group to Invest €2.3B in Brazil by 2014; Targeting 1M vehicles

Volkswagen will be investing a total of €2.3 billion (US$3.4 billion) in new products and manufacturing capacity expansion in Brazil between 2009 and 2014.

We will enjoy significant growth in Brazil this year and win market share. Our target is to sell one million vehicles per year in Brazil by 2014, thus making an important contribution to the success of the Group’s Strategy 2018.

—Thomas Schmall, CEO Volkswagen do Brasil

The spending will support the development of new products and the expansion of capacity in Anchietá, Taubaté and the engine plant in São Carlos. With a daily production capacity of 3,000 vehicles, Volkswagen do Brasil is today already the country’s largest automaker. Volkswagen also has the largest dealer network in the Brazilian automotive industry with 600 dealers located across the country. Deliveries to customers by Volkswagen do Brasil have risen by 70% since 2005 to 585,000 units in 2008. Local production will total some 800,000 vehicles this year.

The Volkswagen brand is launching 26 product innovations in Brazil during this year and next year under its product initiative. Over the last two years, Volkswagen has completely rejuvenated its product range with the introduction of the new Gol, Saveiro, Voyage and Fox. The new Cross Fox will debut at the end of November. The Passat CC, Eos and Tiguan are available as imported vehicles.

Brazil is seen as a market with high growth potential. Statistics indicate there is at present only one vehicle per seven inhabitants. In Germany, this figure is one vehicle per two inhabitants. Forecasts indicate that vehicle density in Brazil will rise to approximately one vehicle per four inhabitants over the next five years.

Deliveries by the Volkswagen Passenger Cars brand during the first ten months of 2009 rose to approximately 529,000 units (2008: 456,500, +15.9%). Market share increased by 1.7% to 25.7%. Brazil is the Volkswagen Group’s third largest market after China and Germany.



A very wise move by VW-Audi-Porsch. Brazil is a fast growing large economy and a good place to supply vehicles to many other countries in SA and NA.

VW, with fast expansion in China, Brazil, USA, EU etc may become the number one world car maker very soon.

The comments to this entry are closed.