VW South Africa’s new managing director and group chair, Martina Biene, has confirmed that the local subsidiary is looking at building a completely new electric vehicle (EV) at its Kariega assembly plant in the Eastern Cape where the popular Polo is currently being produced, reports News24.
“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.”
Biene further confirmed it will have an SUV shape due to the popularity of this body style in African markets.
What needs to happen
Biene’s announcement marks one of the first times a major manufacturer has taken tangible steps towards pivoting its local manufacturing operations to EV production following frequent calls from industry players that South Africa must kickstart EV development to avoid falling behind and losing big chunks of export revenue.
However, she emphasises that a few things must be in place for VW to start producing its new electric SUV domestically. This includes a stable grid, a greener source of power, and getting battery cells closer to the manufacturer.
“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.”
Commenting on Biene’s statement, global chief executive of VW Passenger Cars Thomas Schaefer said the company strives to build vehicles where they are sold and that it will focus on regional markets going forward rather than the global arena, as it significantly cuts down on operational costs.
“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.
As such, VW will “need South Africa to play a significant role in the business” as it aims to make it the base camp from which it will expand its African regional operations.
Keyword: VW looking to build all-new electric SUV in South Africa