Volkswagen Group Africa has commenced full-scale production of the Tengo at its Eastern Cape plant in South Africa ahead of its planned launch in early 2027. The vehicle is the first Volkswagen SUV to be manufactured at the plant in its 75-year history, joining the Polo and Polo Vivo on the production line. The SUV production is the culmination of a $241 million investment in Volkswagen’s South Africa operations in 2024. The German automaker seeks to expand across the continent, where demand for compact, affordable SUVs is rising. The Tengo is based on the Brazil-built Tera but tailored specifically to African markets. About 45% of its components will be sourced locally, supporting South Africa’s auto supply chain.