RIO DE JANEIRO: Volkswagen will produce a new pickup truck called the Tukan in Brazil starting in 2027, the German automaker's country CEO said, investing 3 billion reais (RM2.239bil) as part of its expansion in Latin America's pickup segment.
The Tukan will be manufactured at Volkswagen's Sao Jose dos Pinhais plant in Parana state.
The model will initially target Latin American markets and is part of a 20-billion-real (RM15bil) investment plan for South America through 2028.
The pickup market represents nearly 18% of vehicle sales in Brazil, country CEO Ciro Possobom told Reuters.
"It's a large market, and we need to be present. It is growing significantly because of agribusiness and the large number of unpaved roads in Brazil and Argentina, which require a robust vehicle," he said in an interview.
Possobom expressed optimism about the Brazilian automotive market in 2026, pointing to an expected interest rate-cutting cycle.
He expects Volkswagen's sales to rise by double digits and cited the strong performance of models such as the Polo, T-Cross, Taos, Tiguan and the recently launched Tera.
"In January we already increased our market share by one percentage point compared with the same month in 2025. We ended December at 18%. We believe we can, as we did in 2025, grow three times more than the market average," Possobom said.
