The new Tengo will become the third model built at Volkswagen Group Africa’s Kariega plant, with production set to begin in 2027
Volkswagen Group Africa marked 75 years of manufacturing in South Africa with the unveiling of the new Volkswagen Tengo at its Kariega plant in the Eastern Cape, alongside a R4 billion investment linked to the model’s introduction.
The Tengo will become the third model manufactured at the Kariega plant, joining the Polo and Polo Vivo. Production is scheduled to start in 2027, adding a new vehicle to a plant that has built more than 4.8 million vehicles over its history.
President Cyril Ramaphosa attended the 75th Anniversary Gala Dinner on August 31 and welcomed Volkswagen’s continued investment in the country, describing the Tengo investment as a vote of confidence in South African manufacturing.
“We particularly welcome the R4 billion investment associated with the introduction of the new Volkswagen Tengo.
“It is a vote of confidence in our workers. It is a vote of confidence in our manufacturing capability. And it is a vote of confidence in South Africa as an investment destination,” Ramaphosa said.
The President said the automotive industry remains important to South Africa’s manufacturing base, supporting more than 115,000 direct manufacturing jobs and more than half a million jobs across the wider automotive value chain. He said the industry contributes just over 5% to the country’s GDP and reaches 155 export destinations.
Last year, more than 156,000 vehicles were produced at Kariega, with almost 120,000 exported to international markets. The plant currently manufactures the Polo, which is exported to markets including Europe and the Asia-Pacific, as well as the Polo Vivo for the local market.
For Volkswagen, the Tengo represents the next stage in the development of the Kariega plant. The company announced the R4 billion investment in 2024, with most of the funding allocated to production facilities, manufacturing tooling, local-content tooling and quality assurance. Nearly R877 million was earmarked for automation in the Body Shop.
Volkswagen has already begun preparing the plant for the new model. In August, the company appointed Marc Stephan as its new Production Director, with responsibility for leading production operations through the start of Tengo production and further developing the plant for future models. Stephan previously headed production at Volkswagen’s Zwickau plant in Germany, where he was involved in the facility’s transition to electric vehicle manufacturing.
Ramaphosa said the investment comes at a time when the global automotive industry is changing rapidly, with manufacturers moving towards electric vehicles, hybrids and other new-energy technologies.
“We are determined to ensure that South Africa remains an important global manufacturing base for the vehicles of the future,” he said.
He also called for greater local participation in the automotive value chain, including the development of capabilities in batteries, electronics and other technologies that will increasingly shape vehicle manufacturing.
“We must not only assemble the vehicles of the future. We must increasingly manufacture the components, process the materials and develop the skills and technologies that go into them,” Ramaphosa said.