Automobile and commercial vehicle manufacturer Volkswagen has obtained 2.3bn reais ($425.62m) in financing from Brazil’s National Bank for Economic and Social Development (BNDES).
The package comprises credit lines intended to accelerate the automaker’s hybrid-vehicle development and to expand export activity from its operations in Brazil.
Beyond accelerating Volkswagen’s range of hybrid vehicles, including mild hybrids, full hybrids, and plug-in hybrids, the BNDES Mais Inovação financing also backs Volkswagen do Brasil’s engineering work on advanced driver assistance systems and connectivity (infotainment) technologies.
The initiative aims to make advanced safety features more widely accessible and to steadily enhance the customer experience.
Volkswagen do Brasil CEO Ciro Possobom said: “A new era of electrification begins for Volkswagen do Brasil. Starting in 2026, every new Volkswagen developed by our engineering department and manufactured in the South American region will be electrified! We will offer hybrids in all possible forms: mild hybrids, hybrids, and plug-in hybrids, representing our commitment to the future of sustainable mobility. We will have a complete solution, democratising electrification and access to advanced safety, connectivity, and artificial intelligence technologies.
“The 2.3bn reais investment, made possible by BNDES, accelerates Volkswagen's energy and technological transition in Brazil and further strengthens our Engineering department. We are working to strengthen the national industry, which develops and produces cars here, generating jobs and accelerating the economy.”
Volkswagen has shipped more than 4.4 million units from Brazil to 147 markets since 1970. The company reported a 43% increase in exports for the period January–September 2025 compared with the same months in 2024.
Recently, Volkswagen Group reported a net loss of €1.07bn for the third quarter of 2025, compared with net income of €1.56bn in the third quarter of 2024 — the group’s first quarterly loss since Q2 2020.
