The VW Polo may soon be discontinued in Europe as a result of new EU emission regulations.
The new Euro 7 (EU7) regulations, which are scheduled to come into effect from 2025, would lower the acceptable level of emissions from internal combustion engine (ICE) cars to the point where the Polo would need to undergo an extensive rework to meet the new requirements.
As such, the CEO of Volkswagen, Thomas Schäfer, recently made a statement that there would be “no point carrying on” with small ICE vehicles such as the Polo.
The automaker has slowly been growing its portfolio of small electric cars, such as the ones found in its ID range, and these models would “basically replace” the small combustion engine found in the Polo, he said.
Furthermore, he said that it makes ” no sense to go with very small cars beyond EU7,” as it is estimated that the new regulations could increase the price of compact ICE vehicles by several thousand euros.
While the German carmaker is still assessing its options, the most likely suggestion put forward is that it will no longer invest in ICE development and will instead accelerate its electrification agenda.
The higher-spec Golf and GTI models, meanwhile, appear to be unaffected, as Schäfer reportedly told audiences at the 2022 Los Angeles Auto Show that they had no plans to kill off the “iconic” nameplate.
What this means for South Africa
The VW Polo is manufactured right here at the company’s Kariega Plant in the Eastern Cape and is one of the country’s top vehicle exports.
Having been in production since 1996, the hatchback has become one of the most recognized cars on South Africa’s roads with more than 4.2 million units produced.
The RTMC also noted earlier this year that roughly 17% of all cars registered in the country have a Polo badge, giving it the single highest market share of any vehicle.
Even with these big numbers, a significant portion of the Polos manufactured here do not stay in the country, but are instead exported overseas.
As of July 2022, more than 80% of the last 500,000 units produced were shipped off to at least 38 different countries, with Europe and the UK in particular being the primary recipients.
The potential loss of these markets would undoubtedly be a huge blow to the local automotive sector, though it doesn’t mean the Polo will cease to exist in its entirety.
Kariega manufactures the hatchback for all right-hand drive markets and supplements production for left-hand segments as well, meaning there are still several countries that would welcome the Polo badge.
Volkswagen is also planning to expand its local facilities to manufacture a third ICE car catered specifically for the African continent to supplement sales as Europe continues to shrink as a potential market.
Ready for the electric future
Arguably, the larger issue highlighted by the Polo’s situation is that South Africa is falling behind in the transition to electric vehicles.
Experts from across the automotive sector have warned that the country will lose out to key export markets if it continues to primarily focus on ICE while the rest of the world is switching to EVs, and it’s possible that the Polo may just be the first of many casualties in this pursuit.
Other carmakers, such as Ford, have also been retiring their smaller vehicles like the Figo and Fiesta, and brands like Peugeot and Fiat in Europe now offer electrified versions of certain models such as the 208 and 500, though neither of these cars are available in South Africa.
Given that the domestic automotive industry contributes over R200 billion a year – 4.3% of the GDP – and accounts for nearly a fifth of all manufacturing, it will become increasingly important over the next decade that South Africa prepare for the shift to EVs if it doesn’t want to lose out on more of its key export markets.
Keyword: VW Polo may soon be axed in Europe – What it means for South Africa