German carmaker Volkswagen wants to strengthen its position in South American markets. To this end, it plans to invest one billion euros in the region by 2026, including in the further development of ethanol-powered engines and the launch of its electric vehicles on South American markets.
Future expectations
According to Volkswagen, Latin America is a region where vehicle sales are expected to increase significantly by 2030. “We will invest one billion euros in South America by 2026,” said the German carmaker’s chief Thomas Schäfer.
Until car operations in Latin America can be fully electrified, the automaker is betting on internal combustion engines that are capable of using biofuels. The carmaker plans to further develop internal combustion engines that use ethanol or blends with diesel. According to Volkswagen, ethanol is a “sustainable fuel” that can significantly reduce emissions compared to gasoline or diesel.
Electric car range
Volkswagen will also start offering its fully electrified cars in Brazil, Latin America’s most populous country, this year. The transition to electromobility in Brazil and other Latin American countries is likely to be slower than in Europe. According to estimates, electric cars will account for only four percent of the car market in Brazil in ten years’ time.
Brazil, where Volkswagen is celebrating 70 years on the market this year, is key to the German company’s plans. The carmaker wants to increase its sales there by 40 percent by 2027 compared to today. According to official statistics, Volkswagen was the third best-selling new car brand in Brazil last year.
Source Czech Press Office
