Days numbered for VW Polo Vivo in South Africa

Volkswagen Group has noted the possibility of discontinuing production of its Polo Vivo hatchback due to a combination of new models in the works and increasing competition from cheap imports.

These were some of the comments that Volkswagen Group Africa chair and MD Martina Biene made during a National Automobile Dealers’ Association (Nada) event in March.

She explained that local car makers are undervalued in South Africa. They have little protection from cheaper imports and must pay the cost of government failures to remain operational.

The challenges Biene mentioned include the additional costs imposed on manufacturers due to unreliable electricity supply, inefficient transport and logistics, and operational difficulties at the country’s ports.

These locally unique costs have made it difficult to compete with cheap imports from Asia, which don’t face the same challenges, creating an unfair playing field.

“That is not correct, and we don’t price because of our margin,” she said, explaining that South Africa’s relatively low production volumes put local manufacturers at a disadvantage. 

“Volkswagen only manufactures 27,000 Vivos a year in South Africa, whereas other cars in the segment are produced in countries where 300,000 to 400,000 vehicles are manufactured annually, benefiting from economies of scale.” 

These mass-produced vehicles enter the small South African domestic market at highly competitive prices, making it difficult for Volkswagen and others to compete. “That is not right,” Biene said.

To try to claw back some of the budget segment market share, VW is planning to manufacture and introduce more budget models to the local market.

Volkswagen Group Africa announced in April 2024 that it would invest R4 billion in its Kariega plant in the Eastern Cape to prepare for the manufacture of a budget-friendly SUV.

This new SUV will be what’s known in other markets as the Tera, although it will likely be called something different for the South African market.

It’s been reported that this model will be based on the popular Polo and will be below the imported T-Cross in terms of dimensions and price.

Future of the VW Polo Vivo questioned

To prepare for the production of this new model, Biene said the Kariega plant will be closed for a month starting in mid-April for a major refurbishment.

Interestingly, Biene confirmed that Volkswagen Group Africa is in the process of putting together a business case for another new model, but she did not provide further details.

However, if successful, Moneyweb reported that it appears it could lead to the discontinuation of Vivo production, with Biene saying, “I don’t know if we can run the Vivo for as long as we ran the Citi Golf.”

This is not the first time the continuation of Volkswagen’s budget Polo Vivo hatchback has come into question.

Last year, during a Q&A held at VW’s Polo factory in Kariega (formerly Uitenhage), TopAuto reported that company representatives mentioned that the Vivo “will stick around so long as there is demand for it.”

This comment was followed up with a remark that the Vivo should remain on the market until at least 2030 but that its future past this point is unclear.

However, with 27,000 Vivos manufactured over a year and increasing competition from cheaper imports, the Vivo’s lifespan may be cut short, although nothing is set in stone. For now, the Vivo remains part of VW’s lineup in South Africa.

The Polo Vivo was introduced in 2010 as a successor to the long-standing Citi Golf. Positioned as a more affordable alternative to the Polo, it quickly became popular due to its value for money, reliability, and practicality. 

Fast-forward to 2024, Volkswagen unveiled a refreshed Polo Vivo, with prices starting at R266,600 and climbing to R356,000 for the range-topping model.

In 2025, the price of the VW Polo Vivo hatchback ranges from R271,900 to R363,100. At the current starting price, 20 cars from several brands sold in South Africa are now cheaper than the Vivo.

These numbers indicate the aggressive competition from Asia, with 16 out of the 20 models coming from nine brands imported from Asia.