{"id":850155,"date":"2026-02-06T14:26:12","date_gmt":"2026-02-06T12:26:12","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=850155"},"modified":"2026-02-06T14:30:34","modified_gmt":"2026-02-06T12:30:34","slug":"major-international-company-sends-a-warning-to-south-africas-government","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/850155\/major-international-company-sends-a-warning-to-south-africas-government\/","title":{"rendered":"Major international company sends a warning to South Africa’s government"},"content":{"rendered":"\n

Volkswagen AG said a plan to start producing a new pick-up truck in South Africa will hinge on improved tax breaks and other incentives to boost the industry.<\/p>\n\n\n\n

For the investment to make sense, the company needs urgent policy action from the South African government<\/strong>, with Martina Biene, the Volkswagen Group Africa chairwoman, writing to President Cyril Ramaphosa in December asking for rapid reforms. \u00a0<\/p>\n\n\n\n

VW joins a growing group of automakers calling on South Africa to take measures to safeguard an industry under siege from surging imports and the rising cost of doing business. <\/p>\n\n\n\n

Just one in three cars sold in South Africa are locally manufactured, down from 56% two decades ago.<\/p>\n\n\n\n

VW\u2019s Wolfsburg head office approved the plan to build the light pick-up last year, and it is likely to be similar to the Tukan pick-up due to begin production in Brazil in 2027.\u00a0<\/p>\n\n\n\n

\u201cWe all agree that this would be the next right vehicle for South Africa,\u201d Biene said in an interview this week at the company\u2019s facility in Kariega, on South Africa\u2019s southern coast. <\/p>\n\n\n\n

\u201cWe are now talking about our make-or-break decision for the investment.\u201d<\/p>\n\n\n\n

VW South Africa already produces the Polo Vivo and Polo, and also plans to start making a compact sports utility vehicle known as the Tengo, with first sales next year.<\/p>\n\n\n\n

However, the government has been sluggish in announcing policies to spur an industry, which accounts for more than 5% of economic output.\u00a0<\/p>\n\n\n\n

Local carmakers also rely on Europe and the UK for more than three-quarters of exports. That concentrates risk, as both markets have deadlines to end internal-combustion engine car sales in the next decade.<\/p>\n\n\n\n

That\u2019s why the pick-up \u2014 known locally as a \u201cbakkie\u201d \u2014 is crucial to continuing local production.\u00a0<\/p>\n\n\n\n

\u201cEurope does not need us anymore as an export market,\u201d Biene said. \u201cBut we definitely also see Africa as a big opportunity. So that would be a car clearly focused on the African continent and exports outside Europe.\u201d<\/p>\n\n\n\n

The company could start producing the first units at the Kariega plant in 2029 or 2030, \u201cif all goes well,\u201d she said.<\/p>\n\n\n\n

The policy changes Biene seeks from the government include:<\/p>\n\n\n\n