Volkswagen South Africa’s investment of R4 billion in their assembly plant in Kariega, Eastern Cape, has been welcomed by Minister of Trade, Industry and Competition, Ebrahim Patel.
The investment will introduce a new SUV model built on the Polo platform. The move also positions the facility as the sole manufacturer of the Polo brand globally and the new SUV model will be exported to offshore markets.
Patel made the public announcement on Wednesday during an event held at VWSA’s facility in Kariega.
He said the investment was a testament to the country’s industrial policy, and it will not only strengthen the assembly plant but also secure the livelihoods of approximately 3 500 people who are directly employed by VWSA.
“Moreover, this investment has rippled through this part of the Eastern Cape, fostering an ecosystem of prosperity and industrialisation, supporting an estimated 50 000 indirect jobs and livelihoods.”
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In the last five years, the department said government has undertaken significant work to bolster automotive production in South Africa.
The Minister highlighted that the automotive industry plays a crucial role in our economy, contributing significantly to gross domestic product (GDP) and employment.
The manufacturing component of the auto industry contributed 2.9% of South Africa’s GDP in 2022.
With over 115 000 direct employees and an additional 240 000 indirect jobs, the department said the auto industry remains a cornerstone of South Africa’s manufacturing sector.
Over the past five calendar years, South African OEMs produced 2.7 million vehicles and exported 1.7 million.
In 2023, South Africa exported a record 399 594 vehicles, a milestone for its industrial resilience and global competitiveness.
