Volkswagen is the only manufacturer in SA that hasn't started pivoting to new energy vehicle manufacturing

mylesillidge

mylesillidge

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Volkswagen making a huge mistake in South Africa

Automotive and transport industry analysts are sceptical about Volkswagen South Africa's plan to pivot its vehicle exports to other African markets as demand for its cars declines in Europe.

The transition towards new energy vehicles (NEVs) is an existential threat to the continued existence of the German automotive giant's Kariega factory in the Eastern Cape.
 
I sometimes wonder how people think medium to long term will play out. This almost sounds like "Africa will get landlines before mobile phones because landline phones are cheaper.".

Yes Africa doesn't have a well developed electrical grid. But probably they don't need national grids to make electric cars work.

Take my word for it - once electric car prices drops below a certain threshold Africa will adopt with gusto.

And no, they won't magically develop grids. But electric cars with vehicle-to-load and cheap solar will make a transformative difference and you will see microgrids and off-grid installations everywhere.

Imagine a car becomes more than transport but also the battery that powers your lights, TV and phone chargers when you are at home.
 
Johand said:
I sometimes wonder how people think medium to long term will play out. This almost sounds like "Africa will get landlines before mobile phones because landline phones are cheaper.".

Yes Africa doesn't have a well developed electrical grid. But probably they don't need national grids to make electric cars work.

Take my word for it - once electric car prices drops below a certain threshold Africa will adopt with gusto.

And no, they won't magically develop grids. But electric cars with vehicle-to-load and cheap solar will make a transformative difference and you will see microgrids and off-grid installations everywhere.

Imagine a car becomes more than transport but also the battery that powers your lights, TV and phone chargers when you are at home.
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Especially when they allow cheap secondhand imports. You can get EVs for $500.
 
But they are still trying to figure a diesel engine that does not need fraud to succeed emission criteria. They may still be years or decades from newer technology.
 
Volkswagen Group Africa CEO Martina Biene has labeled 2026 as a "make-or-break" year for the company's future in South Africa. She warned that urgent government policy interventions and tax reforms are needed for its Wolfsburg headquarters to approve massive future investments for a new vehicle line in the region.
 
If I was a vW exec and I paid serious attention to what was coming out of China, I'd send everyone back to the drawing board. In fact, all the big established brands need to reassess and adapt. This doesn't sound like adapting, it sounds like short term coping.
 
MrGray said:
If I was a vW exec and I paid serious attention to what was coming out of China, I'd send everyone back to the drawing board. In fact, all the big established brands need to reassess and adapt. This doesn't sound like adapting, it sounds like short term coping.
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What are you talking about? This has real door handles. Love the retro dash board look and real buttons on steering wheel.
 
wingnut771 said:
What are you talking about? This has real door handles. Love the retro dash board look and real buttons on steering wheel.
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As good as I actually think the ID Polo looks, they can't get down to the same price points as the Chinese manufacturers for the same or similar features. And if it ever came to SA it would probably land north of R700k, in a market rapidly flooding with <R400k BYDs.
 
MrGray said:
As good as I actually think the ID Polo looks, they can't get down to the same price points as the Chinese manufacturers for the same or similar features. And if it ever came to SA it would probably land north of R700k, in a market rapidly flooding with <R400k BYDs.
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How are BYD able to build and sell cars for these low prices?
 
MrGray said:
As good as I actually think the ID Polo looks, they can't get down to the same price points as the Chinese manufacturers for the same or similar features. And if it ever came to SA it would probably land north of R700k, in a market rapidly flooding with <R400k BYDs.
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Um, the ID Polo is 23000 euros and the leap motor chinesium above in post #4 is 33000 euros.
 
PaulKempTheSecond said:
How are BYD able to build and sell cars for these low prices?
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Massive vertical integration and modern manufacturing techniques.

The fact is BYD supplies their own batteries which is the biggest and most expensive component. Plus they aggressively adopted modern technology like giga casting, structural battery packs etc. Plus they have much more efficient assembly lines bringing major sub-assemblies together instead of working on a single assembly.

Meanwhile VW is slow to adopt new techniques and have to retain more workers to sustain old process because they are resistant to change. (Typical in big corporates is that nobody wants to take the small risks even if it exposes the company to existential risk).

Chinese cars are not cheaper because labour is cheaper. It is because they have better tech, better processes, better factories.
 
wingnut771 said:
Um, the ID Polo is 23000 euros and the leap motor chinesium above in post #4 is 33000 euros.
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The BYD Dolphin Surf starts at €19990. I know what you're going to say, but even in Europe people are constrained for cash at the moment and that trumps brand loyalty. And in SA, the differential will be even more amplified by the duties.
 
Johand said:
Massive vertical integration and modern manufacturing techniques.

The fact is BYD supplies their own batteries which is the biggest and most expensive component. Plus they aggressively adopted modern technology like giga casting, structural battery packs etc. Plus they have much more efficient assembly lines bringing major sub-assemblies together instead of working on a single assembly.

Meanwhile VW is slow to adopt new techniques and have to retain more workers to sustain old process because they are resistant to change. (Typical in big corporates is that nobody wants to take the small risks even if it exposes the company to existential risk).

Chinese cars are not cheaper because labour is cheaper. It is because they have better tech, better processes, better factories.
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Ok but Geely is cheaper than BYD here and that doesnt have a BYD battery.
 
MrGray said:
The BYD Dolphin Surf starts at €19990. I know what you're going to say, but even in Europe people are constrained for cash at the moment and that trumps brand loyalty. And in SA, the differential will be even more amplified by the duties.
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A dolphin surf is half the size of a polo.
 
BYD is also relying heavily on government subsidies to make their cars cheaper. I'm sure they would be making a loss on each one if it wasn't for that.
 
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