VWSA invested R4 billion into South Africa’s automative sector.
VWSA R4 billion investment fortifies South Africa’s auto industry
VWSA injection of R4 billion into its assembly plant in Kariega, Eastern Cape, garnered praise from Minister, Ebrahim Patel.
VWSA invested R4 billion into South Africa’s automative sector.
Volkswagen South Africa’s (VWSA) injection of R4 billion into its assembly plant in Kariega, Eastern Cape, garnered praise from Trade, Industry, and Competition Minister, Ebrahim Patel.
The VWSA investment signals the introduction of a new SUV model based on the Polo platform, solidifying the facility’s position as the exclusive Polo brand manufacturer worldwide. Moreover, this SUV model is set to be exported to various global markets.
Investment safeguards the employment of approximately 3500 VWSA employees
Minister Patel lauded the move during a public announcement at VWSA’s Kariega facility, emphasising its alignment with the country’s industrial policy.
He highlighted its role in fortifying the assembly plant and safeguarding the employment of approximately 3500 direct VWSA employees.
“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, ” he said.
Furthermore, in the past five years, the government has actively bolstered automotive production in South Africa, Patel noted, citing ten key actions taken by the sixth administration to support the industry.
These include the implementation of a new Automotive Masterplan in July 2021, the conclusion of modalities for the African Continental Free Trade Agreement, and securing investment commitments totalling R50 billion in the auto sector.
Automative industry remains a vital contributor to South Africa’s economy
The automotive industry remains a vital contributor to South Africa’s economy, with its manufacturing segment alone contributing 2.9% to the country’s GDP in 2022. Also, with over 115 000 direct employees and an additional 240 000 indirect jobs, the sector continues to be a linchpin of the nation’s manufacturing landscape.
Despite global challenges such as the COVID-19 pandemic and supply chain disruptions, South Africa’s automotive industry has demonstrated resilience, evidenced by the record export of 399 594 vehicles in 2023.
