Volkswagen Trucks and Buses is betting on growth in the competitive Peruvian market.

Volkswagen Trucks and Buses, one of the divisions of the German automotive giant, is intensifying its efforts in the competitive Peruvian market, where more than 99 brands are vying for consumer attention. Despite the challenges faced over the past year, the company remains optimistic and has set ambitious goals for the immediate future. The reality of the truck and bus sector in Peru is complex, as in 2022, the leadership in the category of trucks over 3.5 tons was mainly dominated by manufacturers from China and Japan, while Volkswagen strives to secure its market share. Luis Alvarado, Commercial Director of Trucks and Buses at Euromotors, Volkswagen's representative in Peru, highlighted that despite a decline in unit sales, which dropped from 600 in 2022 to 480 in 2023, the company managed to maintain its revenue and profit levels. However, this slip in market share has raised concerns within the company. Alvarado emphasized that the challenges have been significant, due to both internal and external factors, and lamented the lack of government measures to stimulate private investment. With an eye on better performance for the second half of 2024, Volkswagen has set an ambitious growth target, expecting to increase its sales by 10% to 15% and surpass 600 units. This strategy aims not only to recover its market share, which currently stands at a modest 5%, but also to reaffirm the brand's position in a highly competitive landscape. The company has concrete investment plans, announcing a total budget of 14 million dollars for 2024 and 2025. Of this amount, 9 million will be allocated to maintaining a mix of models and quantities of trucks and buses to efficiently serve large clients. Additionally, 2.5 million will be assigned to the after-sales division, ensuring the supply of original spare parts and the maintenance of equipment and tools, while the remaining 2.5 million will focus on infrastructure improvements, covering its own facilities and workshops in Lima and other provinces. Volkswagen's service network in Peru currently consists of six dealerships and five authorized workshops that provide after-sales service to more than 12,500 units in circulation. This focus on customer service is crucial, as the truck and bus sector heavily relies on maintaining a good relationship with clients through solid and reliable service. In a country where over 90% of cargo is transported by trucks, the demand for heavy vehicles is constant. Alvarado emphasized that the agricultural sector is one of the main drivers behind this demand, as it requires robust logistics to meet its operational needs. However, he also warned that virtually all sectors in Peru depend on cargo vehicles for their operations, underscoring the importance of their offerings in the market. Volkswagen is focusing its efforts on three specific sectors to stimulate sales: public cleaning services, with the introduction of garbage compactors; beverage distribution, a growing area that demands efficient land logistics; and finally, mining and construction, where off-road vehicles are crucial for operations. The company has also expressed interest in strengthening its presence in the urban bus segment, an area that presents significant growth potential. With a diversified approach and a clear investment strategy, Volkswagen Trucks and Buses aims not only to recover its market share but also to expand its influence in a sector that, despite challenges, remains vital to the Peruvian economy. This renewed momentum from Volkswagen Trucks and Buses comes at a key moment, as the Peruvian economy is undergoing a period of uncertainty. Expectations for changes in private investment are high, and the company is confident that, with the right strategies, it can not only overcome current obstacles but also position itself as an undisputed leader in the heavy vehicle market in Peru. With a clear vision and a firm commitment to continuous improvement, Volkswagen Trucks and Buses is preparing to rev its engines and accelerate on the road to growth.