Volkswagen Group Africa (VWGA) has begun full-scale production of its new Tengo compact SUV at the Kariega plant in South Africa, with a market launch planned for early 2027.
The Tengo is the first SUV Volkswagen has ever built at its Eastern Cape plant in the facility’s 75 years of operation. It will join the Polo and Polo Vivo as the third model produced there.
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Production begins on a 4-billion-rand ($241 million) investment announced in 2024, as Volkswagen works to grow its presence in Africa, where interest in affordable compact SUVs keeps rising.
The Tengo is built on the Tera, which Volkswagen makes in Brazil. VWGA and Volkswagen do Brasil worked together to tailor it to African markets.
Roughly 45% of the parts come from local suppliers, supporting South Africa’s automotive supply chain.
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Employees and customers from several African countries took part in a contest to choose the model’s name.
