The T2c, so called because it got a slightly raised roof — by about 10 cm (3.9 in) — in the early 1990s, was built for the South American and Central American markets. In Brazil, it is known as the “Kombi”.
Since 1995, the T2c has been built in Brazil with 1.6 L air-cooled engines for the Brazilian market, and with the water-cooled 1.8 L inline four cylinder 67 kW (91 PS; 90 bhp) fuel injected engine for the Mexican market, the latter easily identified by their large, black-coloured, front-mounted radiators.
Since production of the original Beetle was halted in late 2003 as a 2004 model, the T2 remained the only Volkswagen model with the traditional air-cooled, rear-mounted boxer engine when the Brazilian model shifted to water-cooled on 23 December 2005. There was a 1.6 L 50 hp (37 kW; 51 PS) water-cooled diesel engined version of the T2, which was manufactured from 1981–1985 in Brazil. This version was very economic – values from 15 km/l to 18 km/l are reported – but suffered from low performance and the cooling system was insufficient for the general usage, which led to short engine life. Some owners exchanged the engines to Volkswagen gasoline 1.6 or 1.8 L units, while others fixed the cooling problems.
The end of the Volkswagen air cooled engine on a worldwide basis was marked by a Special Edition Kombi. An exclusive Silver paint job, and limited edition emblems were applied to only 200 units in late 2005, and were sold as 2006 model-year.