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Volkswagen turns attention to Africa

Vw Article Pic March 20204

Volkswagen’s Kariega manufacturing facility employs 3 900 people and creates an additional 20 000 jobs through its supplier base.

This local facility which currently produces the Polo and Polo Vivo is now the sole global producer of the Polo from where this model is exported to all markets where it is sold.

“In 2024, 72% of Volkswagen’s manufactured in South Africa were exported to global markets. With Europe banning ICE vehicles in the next decade, exports from the Kariega manufacturing plant will need to reach new and alternative markets,” said Martina Biene, Chairperson and Managing Director of Volkswagen Group Africa.

“Africa is the last frontier for automotive growth and with new vehicle sales expected to grow substantially in Africa in the next 10 years the future of Volkswagen is in Africa,” added Biene.

“With new vehicle sales in Africa projected to reach three million vehicles per annum, the future of Volkswagen is in Africa,” said Biene. “With increasing population numbers, a GDP per capita increase, low vehicle density and an average age of 19 years we expect the demand for vehicles to skyrocket and in response Volkswagen South Africa are positioning ourselves to service this need, with the local company to trade as Volkswagen Group Africa going forward,” explained Biene.

“Many of the major African countries are also expected to announce policies to assist this growth and slow down the import of second-hand vehicles to the continent,” said Biene.

“To support this growth Volkswagen currently have an assembly facility in Ghana as well as a SKD assembly facilities in Kenya and Rwanda,” added Biene.

In 2024 production of the Polo will be increased by 10 000 units to meet this demand. In addition, Volkswagen are also expected to make an announcement imminently regarding a third product which will be produced in the plant. These measures will ensure the viability of the manufacturing facility until at least 2030 and plans are afoot to ensure longevity indefinitely.