Volkswagen has announced a significant investment of 4 billion rand (approximately $210.67 million) in its manufacturing facility in the Eastern Cape of South Africa. This investment is set to prepare the plant for the production of a new SUV model starting in 2027. South Africa is recognised as the premier automotive manufacturing hub in Africa, home to major international brands including Toyota, Isuzu, Volkswagen, and Mercedes.
The German automaker’s planned investment will focus on upgrading various plant facilities to accommodate the introduction of a third model to its production lineup. Martina Biene, Chairperson and Managing Director of Volkswagen Group Africa, highlighted that while many global markets are shifting towards electric vehicles. African markets, including South Africa, will continue to produce and sell internal combustion engine (ICE) vehicles due to ongoing consumer demand and the gradual adoption of electric vehicles in the region.
In contrast, European Union countries are aiming to halt the sale of new CO2-emitting cars by 2035, and the U.S. plans to increase the proportion of fully electric vehicles sold to as much as 35%.
The upgrade of the Kariega plant is scheduled to commence at the end of 2024, during a planned shutdown. The new SUV is being designed and developed by Volkswagen Brazil, in collaboration with the engineering team of Volkswagen Group Africa. To meet local and continental requirements, such as right-hand driving configurations. However, the specific name of the new SUV has not been disclosed.
Volkswagen’s South African plant currently produces the Polo and Polo Vivo models and has seen investments totalling 10.28 billion rand since 2011. Biene also mentioned that the upcoming model might also be marketed in other African countries where Volkswagen has a commercial presence. Additionally, the company plans to introduce its ID.4 test fleet in South Africa and Rwanda as part of its strategy to explore electric vehicle markets.
