By Nqobile Dludla.
Volkswagen Group Africa (VWGA) has begun full-scale production of its new Tengo compact sport utility vehicle at its Kariega plant in South Africa, ahead of its launch in early 2027.
The Tengo is the first Volkswagen SUV to be built at the Eastern Cape plant in its 75-year history and will become the third vehicle manufactured at the facility alongside the Polo and Polo Vivo.
The start of production marks the culmination of a 4 billion-rand ($241 million) investment announced in 2024 as Volkswagen seeks to expand across Africa, where demand for compact and affordable SUVs has been growing.
Based on Volkswagen’s Brazil-built Tera, the Tengo was developed specifically for African markets through collaboration between VWGA and Volkswagen do Brasil.
Volkswagen said about 45% of its components are sourced locally, supporting South Africa’s automotive supply chain.
The model’s name was selected through a competition involving Volkswagen employees and customers across several African countries.