Volkswagen's South Africa Pickup Production Hinges on Government Incentives

Volkswagen has announced that the success of its plan to produce a new pickup model in South Africa depends on the government's ability to provide better tax incentives and other industrial support measures. According to Jin10, Martina Biene, Chairperson of Volkswagen Group South Africa, emphasized the need for urgent policy actions from the South African government to make the investment economically viable. She wrote to President Cyril Ramaphosa in December, urging swift reforms. Volkswagen joins other automakers in calling for measures to protect the industry, which is currently facing challenges from rising imports and increasing operational costs. Currently, only one-third of cars sold in South Africa are locally manufactured, a significant drop from 56% two decades ago. Biene mentioned that if all goes well, the company might start producing the first models at the Kariega plant by 2029 or 2030.