Volkswagen to Add New Models in Brazil from 2014
Volkswagen is preparing to expand its Brazilian range from 2014, with the Up city car, Taigun small SUV and a revised Fox expected to join the local line-up.
Volkswagen is planning to broaden its model range in Brazil starting in 2014, with the Up city car, the Taigun small SUV and a new version of the Fox among the models expected to be introduced. The move is part of the company’s strategy to increase its presence in emerging markets as growth in Europe slows.
According to a report published by WirtschaftsWoche, Volkswagen’s Brazilian expansion will begin with the launch of the Up, a compact city car positioned below the Polo. The Up, already sold in Europe, is designed for urban use and is expected to appeal to Brazilian buyers looking for affordable, efficient transport. Volkswagen will also introduce the Taigun, a small SUV concept first shown in 2012, which targets the growing demand for compact crossovers in South America. A revised version of the Fox, a popular compact hatchback produced locally, is also planned.
Why Brazil matters for Volkswagen
Volkswagen’s decision to expand its Brazilian line-up comes as the company faces declining sales in Europe. In the first five months of 2013, group sales in Europe fell by 3.5 percent, while sales in Germany dropped by 3.3 percent. South America, and Brazil in particular, remains a crucial market for the brand, even though sales in the region slipped slightly by 0.4 percent to 375,400 units in the same period. By investing in new models tailored to local tastes, Volkswagen is seeking to maintain and grow its market share in Brazil, which is one of the world’s largest car markets.
The company’s strategy in Brazil mirrors similar moves by other global carmakers, who are introducing new models and variants to address shifting demand in emerging economies. Volkswagen’s focus on compact cars and SUVs reflects the preferences of Brazilian buyers, who favour affordable, practical vehicles suited to city driving and poor road conditions in some regions.
Models expected for Brazil
- Volkswagen Up: Compact city car, positioned below Polo, aimed at urban buyers.
- Volkswagen Taigun: Small SUV, targeting the growing compact crossover segment.
- Volkswagen Fox (revised): Updated version of the locally produced hatchback.
Volkswagen’s expansion in Brazil is also intended to reduce its reliance on European sales, where the market has stagnated. The company has previously outlined plans for a global rollout of 60 new and upgraded models to counteract weak demand in Europe, with emerging markets like Brazil playing a central role in this strategy. For context on Volkswagen’s broader product plans, see Volkswagen Plans 60 New and Upgraded Models to Counter European Decline.
Impact for buyers and the market
For Brazilian buyers, the arrival of the Up and Taigun will increase choice in the affordable city car and compact SUV segments, both of which have seen rising demand. The updated Fox is expected to keep the model competitive against newer rivals. For Volkswagen, the expanded range is aimed at defending its position against competitors such as Fiat and Chevrolet, who have also refreshed their local offerings in recent years.
