The new Volkswagen Tera, to be marketed with a different name locally, will be positioned below the T-Cross.
Image: Supplied
Volkswagen South Africa is gearing up to build a brand new entry-level SUV at its production plant in Kariega, Eastern Cape.
The new model is now a step closer to reality following a recent plant upgrade that saw the facility halt production of its existing Polo and Polo Vivo models for four weeks.
VWSA said 60% of the preparation work for the new SUV product had taken place during the December 2024 shutdown period, while the most recent shutdown, from April 14 to May 12, saw the remaining 40% of upgrades being implemented. This included the programming of robots in the paint shop, completing all installations in the Body Shop, and modifying conveyors in the Final Assembly area.
This means the production of the new ‘AO SUV Entry’ project, as it’s called, has now entered the commissioning phase, with remaining work set to take place in order to prevent any further production disruptions.
VWSA said it was working closely with their colleagues in Volkswagen of Brazil to develop, build and launch this new model.
It is believed that the AO SUV Entry product will be closely based on the Brazilian-developed Volkswagen Tera, albeit with a few modifications for the African market.
The Tera was designed and developed in Brazil, but will be adapted for the SA market.
Image: Supplied
It is also set to receive a new name for our market, which reportedly will be determined through a public vote.
The new entry SUV is closely related to the current Polo, formed around Volkswagen’s MQB-AO platform, but featuring unique body panels and interior components.
South African specifications will be announced closer to launch, but for what it’s worth, the Brazilian model is offered with a choice of normally aspirated and turbocharged 1.0 TSI petrol engines, culminating in the 85kW version also seen in the Polo.
plied The interior bears some resemblance to the latest Tiguan and T-Cross models.
Image: Supplied
It is likely, however, that SA’s entry-level models will be powered by the current 1.4-litre and 1.6-litre MPI normally aspirated engines, as they are locally produced.
It’s too early to speculate on pricing, but VWSA has previously stated that it will slot beneath the T-Cross, which currently starts at R399,900.
It is likely that this vehicle will be priced to sell as in many ways the future of the Kariega plant depends on it, given that Polo production - and the lucrative exports that go with it - is expected to wind down towards the end of this decade, with no replacement envisaged.
The local production of this ‘third product’ is an attempt to shield the facility from this potential existential crisis, although unless other products and export contracts can be secured, the facility still faces the possibility of being forced to downsize