Despite tariff uncertainty Volkswagen Group’s SA plant shows strong growth

In a move that highlights the growing strategic importance of South Africa in global supply chains, Volkswagen Group Africa (VWGA) has emerged as the sole global producer of the Polo hatchback, following the consolidation of production at the Kariega plant, Eastern Cape.

This bold shift, led by Martina Biene (Chairperson and MD of VW SA) and Ulrich Schwabe (Production Director), is more than a production milestone. It’s a vote of confidence in South Africa’s manufacturing capabilities, port infrastructure, and the potential of the region as a launchpad for African and global markets.

From record production volumes to strong export performance, Volkswagen Group Africa’s (VWGA) first year as the Home of Polo has been a year of achievement.

Though VWGA’s Plant Kariega has been building the popular Polo since 1996 and the Polo Vivo since 2010, it has only been the self-proclaimed Home of Polo since 1 July 2024. This was when the plant officially became the sole exporter (for left- and right-hand drive European and Asia-Pacific markets) of the Polo in the Volkswagen Group, sending this hatchback to 38 markets around the world.

In fact, Polos account for 88% of exported vehicles through the Port of Port Elizabeth. Between July 2024 and June 2025, 119 336 Polos have been exported from Kariega to Europe and the Asia-Pacific region. Of these, the biggest receivers of Polos are Germany, France and the United Kingdom. On top of this, the Polo was South Africa’s most exported vehicle in 2024.

During this same 12-month period, the plant celebrated a record production volume. A total of 167 084 vehicles were built in Kariega in 2024, of which 131 485 units were Polos for export, and 35 599 vehicles were Polos and Polo Vivos for the local market. A record-breaking 13 930 Polos were built in October 2024 alone.

The Polo Vivo and upcoming Tengo reflect a strategy tailored to Africa’s rising urban consumers – affordable, aspirational, and locally relevant. With the APDP automotive policy as a backbone, this marks a true success story in industrial development.

South Africa is no longer just a production site, it’s a strategic anchor in VW’s global portfolio.

The Polo also performed strongly in the local market last year, selling 12 253 units and being named the Top Locally Manufactured Vehicle of the Year at the Naamsa Accelerator Awards in October 2024.

“The Polo is unquestionably an icon, and we are proud to call Plant Kariega its home,” said Ulrich Schwabe, Production Director at VWGA.