Volkswagen Brasil is developing a vehicle based on the modular transverse toolkit MQB completely in-house. The model is also to be produced later in Europe and sold in other international markets.

Volkswagen says it is is strengthening the economic significance of its Brazilian subsidiary with the regionalisation of the South American market. From 2016 through toi 2020, Volkswagen is investing seven billion BRL (approximately 1.5 billion euros / Rs 118,54 crore) in Brazil in the development of new products, digitalisation and technological innovations. With these investments, the German carmaker says it aims to strengthen development of local products for customers in South America in particular, but also worldwide.

This is based on a restructuring program introduced by Volkswagen to support business opportunities in the South American market. Under its regionalisation strategy, the company launched a product offensive with 20 new models for Brazil as the key market in the region.

According to Ralf Brandstätter, Chief Operating Officer of the Volkswagen Passenger Cars brand, “The internationalisation of Volkswagen began 60 years ago with construction of the plant in Anchieta, Brazil. South America has been an important market for Volkswagen ever since. We are strengthening our regionalization strategy with these investments.”

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.”

The vehicle based on the MQB will be designed and developed in Brazil. Known as the 'New Urban Coupé', it combines sportiness with a high driving position. The world premiere is planned for mid-2020. Production will commence at the Anchieta plant in the same year and the vehicle will also be built in Europe from 2021.