South Africa has solidified its position as a key player in global automotive manufacturing with Volkswagen’s announcement. The German automaker has chosen South Africa as the exclusive global producer of the popular Polo hatchback, further solidifying its long-standing commitment to the country.
This decision follows a recent milestone achievement at Volkswagen’s Kariega plant in Nelson Mandela Bay. The 1.5 millionth vehicle built for export rolled off the production line earlier this year. The plant, operational since 1951, currently produces the Polo Vivo and the Polo GTI, exporting these models to 38 countries worldwide.
“Celebrating another production milestone this early in the year sets the tone for a successful 2024,” said Ulrich Schwabe, Volkswagen Group Africa Production Director. “This decision reinforces South Africa’s position as the home of the Polo, and we intend to continue delivering high-quality vehicles to customers around the world.”
South Africa’s well-developed infrastructure, skilled workforce, and strategic location make it an attractive investment destination for multinational corporations. Volkswagen’s commitment is just the latest example. This news follows Stellantis NV’s announcement of a 3 billion rand investment to build a new manufacturing facility in South Africa.
South Africa’s role as a global automotive hub is further bolstered by its participation in the African Growth and Opportunity Act (AGOA) which allows duty-free access to the US market for over 7,000 African products. The country also actively supports industries with high growth potential, offering targeted incentives and tax breaks through its network of special economic zones.