According to VW South Africa managing director, Martina Biene, the company plans to produce a completely new electric vehicle at its Kariega assembly plant in the Eastern Cape. This is the same production plant where the popular VW Polo is currently being produced, and has proved immensely profitable for the German automaker.
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“At this point, we are not talking about a Polo replacement. The Polo and Polo Vivo will remain beyond 2025 because they are such loved products,” said Biene. “We are looking at a third product, an electric vehicle that is currently not produced anywhere in the world, and it is our task also to take it to the next loved brand level.” She also confirmed that it will be an SUV, most likely a smaller variant, as these vehicles are extremely popular in African markets.
Importantly, this could lead to the vehicle costing much less than other EVs in South Africa, since it will be produced locally and won’t have the heavy EV tax included. Why South Africa has such a high tax on electric vehicle imports is a subject for another day, but still unfathomable.
This announcement is the first time a major car manufacturer has indicated it wants to build an EV in South Africa, with industry players saying the country must kickstart EV development to avoid falling behind and losing big chunks of export revenue.
“For Volkswagen, this is the way forward, and we will probably not remain in the realm of vehicles but evolve also into the realm of power and energy storage solutions,” said Biene. “This is an opportunity for South Africa and other African markets. The continent offers so many resources for power. Solar, wind, as well as hydro power could be super big.”
According to global CEO Thomas Schaefer, VW strives to build cars where they are sold and that it will focus on regional markets going forward rather than the global arena. “The logistics and shipment of cars are becoming more and more expensive. The long-term business model that makes sense is to focus on regional markets,” said Schaefer.
