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Volkswagen plans to produce its first SUV in Brazil, it said on Wednesday, betting on a rebound in Latin America's largest market.

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VW said in a statement it will invest 2 billion reais ($595 million) to manufacture the T-Cross subcompact SUV at its Sao Jose dos Pinhais plant in southern Brazil.

It will start selling the T-Cross in the first half of 2019, it said, adding that the project is part of 7 billion reais of planned investments through 2020 to refresh the line-up in its "largest product launch offensive ever" in Brazil.

When it launches, the VW T-Cross will use the company's MQB platform, also used by the Polo. As such, the compact SUV will share some parts with the Polo and Seat Arona and act as a direct rival to the Nissan Juke and Peugeot 2008. It will slot below the T-Roc in Volkswagen's range of SUVs.


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