Volkswagen‘s Brazilian unit is developing its first vehicle  for the international market.

The New Urban Coupe was 100% designed and developed in Brazil. Its world premiere is planned for spring 2020.

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Production will commence at the Anchieta plant that year and the model will also be built in Europe from 2021.

Until now, Volkswagen do Brasil has modified European vehicle designs and engines for local sale but not developed a model from scratch.

The automaker is spending BRL7bn (EUR1.5bn) in Brazil to the end of 2020 under its regionalisation strategy

The new vehicle is based on the MQB modular transverse ‘toolkit’.

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Ralf Brandstaetter, chief operating officer of the VW passenger cars brand, said: “The internationalization of Volkswagen began 60 years ago with construction of the plant in Anchieta, Brazil. South America has been an important market for us ever since. We are strengthening our regionalisation strategy with these investments.”

The BRL7bn is being spent on the development of new products, digitalisation and technological innovations.

“With these investments the company is strengthening the development of local products for customers in South America in particular, but also worldwide,” VW said.

“This is based on a restructuring programme introduced to support business opportunities in the South American market.”

Under the strategy, the company launched 20 new models for Brazil which is the key market in the region.

Pablo Di Si, president and CEO of Volkswagen Latin America, said: “For the first time in our history we will be offering our very own vehicle concept on the international market, and sharing design, technology and know-how from Brazil with the world.”