Cost cutting and focus on electrification goals could be the reasons for changing the production site of the popular Polo hatchback
In production since 1975, Volkswagen Polo is a popular choice across multiple global markets. In 2023, Volkswagen Polo was ranked at 20th position in the list of top 50 best selling cars in the world. VW Polo was a preferred option in India as well, but was discontinued in 2022.
Polo production moves to South Africa
European automotive brands are facing big challenges due to low demand and availability of affordable options from Asian brands. As Volkswagen plans to make a comeback, some critical steps need to be taken. The decision to shift Polo production to South Africa could be part of the overall strategy.
Over the last four decades, Volkswagen Polo was manufactured at the company’s facility in Pamplona, Spain. A decision has been taken to discontinue production of Polo in Spain entirely. Polo will now be manufactured exclusively at the company’s plant in Kariega, South Africa.
However, it is to be noted that the Spain plant will continue to be functional. It will be upgraded to support the production of two new small electric cars. Other models such as the T-Cross and Taigo will continue to be manufactured at the Pamplona plant in Spain.
Polo sales in Europe to continue
While the manufacturing shifts to South Africa, Polo will continue to be available in European markets. Even though the Volkswagen Polo has long passed its peak popularity, it continues to deliver consistent sales. For example, more than 90,000 units have been sold in Europe in the first eight months of 2024. That makes Polo the 8th best selling car in Europe. With significant revenue still coming from Polo, it is unlikely that Volkswagen will withdraw the hatchback from Europe or other markets.
At the production facility in Spain, cumulative production of Volkswagen Polo has been more than 8.4 million units. However, other Volkswagen models like the T-Roc are delivering much better sales. To reduce production cost, it may have become necessary to shift Polo’s production to South Africa.
Two new EVs incoming
The production capacity vacated by Polo at the Spain plant will be used to manufacture two new small electric SUVs. One of these will be Volkswagen branded, whereas the other will be a Skoda version. These new electric SUVs will be based on the MEB platform and use a front-wheel drive setup. The MEB platform is used for various other Volkswagen models.
Volkswagen’s version will go on sale as the ID2all SUV. In the company’s lineup, it will be positioned below the ID.3. Volkswagen will also offer a hatchback version of the ID2all SUV. It will be built at the company’s plant in Martorell, Spain. At the same plant, the Cupra Raval will also be manufactured. The Skoda badged new small electric SUV will go on sale as the Epiq. All these cars will debut in 2025.