In a changing automotive world, South Africa is emerging as a key player. While French production stagnates, this country with a population similar to that of France sees its automotive industry thrive, with an undisputed star: the Volkswagen Polo, beloved by Europeans.
A booming industry
Automotive production in France is a hot topic. While our country sees its factories running at low capacity, South Africa, with its 65 million inhabitants, is charting its own course. In 2023, it recorded a prosperous year and, despite a slight slowdown expected for 2024, the forecasts for 2025 are promising. Experts estimate that South African factories could produce nearly 600,000 vehicles, according to Inovev, with only seven assembly plants, compared to about fifteen for France. The trend is clear: South Africa is gaining strength on the global automotive stage.
South Africa produces the Volkswagen Polo sold in Europe © Volkswagen
The favorite city car of Germans comes from South Africa
It must be acknowledged: the Volkswagen Polo has become the favorite city car of Germans, and this trend has accelerated since it has been fully produced in South Africa. Before that, it had been assembled in Spain since 1984, but times are changing. The decision to transfer production to the Uitenhage plant is not trivial. The Polo, a symbol of German quality, is now manufactured on the African continent, reflecting a bold strategic shift.
For those wondering where the cars produced in this factory go, know that all Volkswagen Polos ordered in Europe now come from South Africa. This is a real masterstroke for the manufacturer, which also produces the Amarok locally, even though the latter is no longer marketed in France. Volkswagen is particularly appreciated in this country, where the Caddy pickup has met with immense success since its production began in the 1980s.
Volkswagen is not the only German manufacturer
But let’s not stop there! South Africa is not limited to Volkswagen. Other German giants such as BMW and Mercedes-Benz have also established their presence there. These brands produce notably the BMW X3 and the Mercedes C-Class, most of whose production is destined for export. In a context where European manufacturers are looking to diversify their supply chains, South Africa represents a strategic option of choice.
Asian brands are not left out either. Take Toyota, for example: it assembles the Corolla Cross in South Africa, although this model is not marketed in France. International markets are clearly at the heart of these manufacturers’ strategies, and South Africa is becoming a hub for their production.
A skilled workforce at the service of the industry
The success of the South African automotive industry also relies on a skilled workforce and significant government support. Local authorities have implemented incentives to attract foreign investments, thus transforming the country into an attractive hub for automotive manufacturers. South African workers have acquired valuable expertise, making it possible to manufacture high-quality vehicles at competitive costs.
This dynamic has allowed South Africa to position itself as a key player in the global supply chain. Indeed, as manufacturers seek to reduce their carbon footprint and optimize their production, having factories on different continents becomes a strategic imperative. South Africa perfectly fulfills this role with its access to African and European markets.
A promising future for the South African automotive industry
The global automotive landscape is undergoing significant changes, and South Africa seems well-positioned to take advantage of it. With forecasts of continued growth and a booming industry, the country could well become the new Eldorado for European manufacturers. The rise of local production offers not only economic opportunities for the country but also a challenge for other players in the sector.
Brands must now compete to secure a place in this expanding market. While French factories struggle to find a second wind, South Africa is taking off, producing not only vehicles but also automotive dreams for millions of Europeans eager for newness.
In summary, South Africa is a striking example of resilience and innovation in the automotive sector. While some see their production collapse, others rise boldly. This reminds us that in the automotive world, there is no room for the status quo.
