Volkswagen to Invest $1.09 Billion in Brazil Market Growth

By David Sachs

Volkswagen said Tuesday that it will invest 1 billion euros ($1.09 billion) by 2026 in Brazil, where it plans to grow by 40% in the next several years.

The German car maker said its investment will include local development of ethanol-based combustion engines and the expansion of its subscription business model that lets customers lease cars for a duration of their choice. The company will also launch two fully electric models in Brazil by the end of the year, part of a plan to bring 15 new electric and hybrid vehicles to the country by 2025, it said.

Volkswagen set a target of 40% growth in Brazil by 2027. It expects the South American market to grow by 11% each year until 2030.

"The company is thereby systematically implementing its strategy to rapidly expand its business in growth markets and to intensify sustainable mobility," it said.

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(END) Dow Jones Newswires

07-04-23 0404ET