BNDES releases R$ 2,3 billion for Volkswagen to expand electrification and exports.
Resources will fund mild hybrids, hybrids and plug-in hybrids, as well as safety and connectivity technologies, and increased exports for the brand.
247 - The Brazilian National Bank for Economic and Social Development (BNDES) has approved R$ 2,3 billion in financing for Volkswagen do Brasil, aimed at boosting the electrification of its portfolio and strengthening the brand's exports, according to information provided by the institution itself. The investment focuses on the production of hybrid vehicles in all modalities—mild hybrids, hybrids, and plug-in hybrids—that meet the diverse needs of consumers and leverage the potential of domestic biofuels, combining sustainability, range, and performance.
The financing signing ceremony took place this Friday (October 31st) at the Anchieta factory in São Bernardo do Campo (SP), with the presence of the Vice President of the Republic and Minister of Development, Industry, Trade and Services, Geraldo Alckmin; the president of BNDES, Aloizio Mercadante; the executive chairman of Volkswagen for the South America Region, Alexander Seitz; the president and CEO of Volkswagen do Brasil, Ciro Possobom; as well as authorities, employees and business partners.
The funding will be divided into two main lines. The line BNDES More Innovation This will support the development of Volkswagen's hybrid portfolio and engineering projects based on ADAS (advanced driver assistance systems) and connectivity (infotainment) technologies, democratizing access to advanced safety technologies and enhancing the customer experience. As for the line... Exim Pre-Shipment This will be aimed at increasing the brand's exports, which is the largest exporter in the Brazilian automotive sector, with more than 4,4 million units shipped to 147 markets since 1970. In 2025, exports are already showing a 43% growth in the period from January to September compared to the previous year.
The president of BNDES, Aloizio Mercadante, highlighted the importance of credit for industrial innovation: “BNDES's support for innovation in Brazilian companies is at the heart of President Lula's government's industrial policy. A more innovative industry, capable of developing technologies aligned with decarbonization in the automotive sector, is an industry that looks to the future. And the future is the energy transition.” He also emphasized that guaranteeing adequate financing conditions is essential so that Brazilian companies are not at a disadvantage compared to international competitors: “Export credit is a state activity inherent to all industrialized economies in the world. BNDES, through its export support lines, encourages the export of national production, so that our companies can seek more markets and generate employment and income in Brazil.”
Ciro Possobom, president and CEO of Volkswagen do Brasil, stated: “A new era of electrification for Volkswagen do Brasil is beginning. 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, democratizing electrification and access to advanced safety, connectivity, and artificial intelligence technologies. The R$ 2,3 billion 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 boosting the economy.”
Volkswagen's CFO for the South America region, Rafael Teixeira, also commented on the partnership with BNDES: “These operations reaffirm Volkswagen's commitment to the sustainable and technological development of Brazil. By enabling investments in electrification, digitalization, and connectivity, we strengthen our partnership with BNDES and contribute to the consolidation of a new national industry, more innovative, green, and prepared to expand its presence in exports and the global integration of the automotive supply chain.”