Volkswagen starts making Africa-focused SUV at South Africa plant

By Nqobile Dludla

JOHANNESBURG, Nov 12 (Reuters) - Volkswagen Group Africa (VWGA) has begun full-scale production of its new Tengo compact sport utility vehicle at its Kariega plant in South Africa, ahead of its launch in early 2027.

• The Tengo is the first Volkswagen SUV to be built at the Eastern Cape plant in its 75-year history and will become the third vehicle manufactured at the facility alongside the Polo and Polo Vivo

• The start of production marks the culmination of a 4 billion rand ($241 million) investment announced in 2024 as Volkswagen seeks to expand across Africa, where demand for compact and affordable SUVs has been growing

• Based on Volkswagen's Brazil-built Tera, the Tengo was developed specifically for African markets through collaboration between VWGA and Volkswagen do Brasil

• Volkswagen said about 45% of its components are sourced locally, supporting South Africa's automotive supply chain

• The model's name was selected through a competition involving Volkswagen employees and customers across several African countries

($1 = 16.6030 rand)

(Reporting by Nqobile Dludla; Editing by Alexander Smith)