Germany’s Volkswagen has announced a $210 million investment in its South African factory

(Ecofin Agency) – The investment will be used to modernize the facilities of the industrial site in the Eastern Cape Province, with the intention of adding a third SUV-type model to the production range from 2027.

German automaker Volkswagen announced in a press release on Tuesday, April 16, 2024, that it plans to invest 4 billion rand (approximately $210 million) in its South African factory to produce a new model.

The group specified that this investment will be used from the end of 2024 to modernize the facilities of the plant in the Eastern Cape province, with the intention of adding a third SUV-type model to the production range from 2027.

” While Most global automotive markets are switching to electric vehicles, while African markets such as South Africa will continue to produce and sell vehicles with combustion engines. This is due to customer demand for combustion engines and the slow introduction of electric vehicles in these markets “, said Volkswagen Group Africa President and Managing Director Martina Biene (pictured).

Volkswagen Brazil is leading the design and development of the new SUV which, in collaboration with Volkswagen Group Africa’s engineering team, will be adapted to local and continental requirements, such as right-hand drive.

“ The new model could be sold in other African markets where Volkswagen is present.” said Mrs. Biene.

Volkswagen produces the Polo and Polo Vivo models at its South African factory.

The automotive industry accounts for approximately 5% of South Africa’s GDP and 12.4% of exports. In addition to Volkswagen, the majority of major international car manufacturers, including Mercedes-Benz, Toyota Motor, Ford and BMW AG, have factories in the continent’s most industrialized country.

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