The compact hatchback has been the dominant force in the SA passenger-vehicle market for a while, but now that the models in that segment (including the Volkswagen Polo) are becoming increasingly sophisticated and, therefore, less affordable, many buyers are shopping for keenly-priced cars at the lower end of the compact family-car market: budget crossovers. Toyota's now got something in that segment, but Volkswagen doesn't…
It seems that in the space of just a year, the small/budget crossover market has exploded in Mzansi, most notably at the entry-level point (B-SUVs), where the Honda WR-V , Toyota Urban Cruiser , Suzuki Vitara Brezza , Kia Sonet , Nissan Magnite and upcoming Renault Kiger fight for the slice of the pie that Ford EcoSport and Renault Duster once had to themselves. From Volkswagen's side, the award-winning T-Cross arrived in the Republic relatively late and gained instant success – however, it's a compact family car whose key rivals are the Haval Jolion , Hyundai Creta , Kia Seltos and Suzuki Vitara , not necessarily the models I mentioned in the first list; just to prove my point: the T-Cross range begins at R347k, whereas the aforementioned Toyota Urban Cruiser starts at R248k (May 2021).
Picture credit: S. Baldauf/SB-Medien. Image watermarked at photographer's request.
Okay, but so what if Volkswagen doesn't bring a small budget-oriented crossover to market? After all, the Polo still sells well. Since the Wolfsburg-based brand's compact hatchback arrived in Mzansi in the late Nineties, the Polo has become the default choice of car that young professionals buy "out of the box"; such was its success that it paved the way for the Ford Fiesta, Hyundai i20, Kia Rio, Renault Clio, Toyota Yaris and so forth. Whereas buyers once defaulted to a Toyota Corolla or a Volkswagen Golf, the Polo (and its like) afforded first-time new-car buyers big-car features in an affordable package.
These days, however, it depends on which Polo you're talking about; the Volkswagen South Africa (VWSA) legacy model – the Polo Vivo – is bringing in the major volumes; by contrast, the list prices for the Polo 6 now starts at R330k (which is not far behind the aforementioned T-Cross ) and the market's king of the compact hatchbacks is no longer selling up a storm in the way it used to… That can partly be attributed to the crossover craze, but also because the car’s becoming increasingly sophisticated (pricey) for the purposes of catering for the European markets that it gets exported to.
Picture credit: S. Baldauf/SB-Medien. Image watermarked at photographer's request.
Recently, Volkswagen showcased the facelifted version of the Polo 6 , which has a Golf 8-aping new look, but a very high standard safety specification, which suggests even though it will go into production later this year at VWSA's plant in Uitenhage, it will become notably more expensive (even if the versions sold in our market won't be quite as fancy as the units that will roll out of European showrooms).
Alarmingly, Renault CEO Luca de Meo was recently quoted as saying that petrol-engined B segment hatchbacks would virtually have to double in price by 2025 (because that’s when Euro 7 emissions standards will come into force). Why? Because it costs a lot to fit particulate-filter technology to petrol cars. While the additional cost can be absorbed on luxury cars, the impact is devastating on the affordability of the once-ubiquitous compact hatchback. That means the current Polo might be the last one we get here, although it should live on as the next Polo Vivo when its product cycle ends.
The facelifted Polo will be launched in South Africa in early 2022.
So what could VWSA do to compensate for the Polo’s gradually diminishing relevance in South Africa? Bear in mind that there is no guarantee that the next-generation Polo will be built here (especially seeing as it might be replaced by an ID-based model abroad) and the Republic is not nearly in a position (at least yet) to encourage a growing parc of electric cars , let alone produce battery electric vehicles on home soil… For the record, VWSA is keen to produce BEVs in Uitenhage, but it would require a veritable boatload of investment in the plant's facilities and infrastructure to make that possible.
Perhaps the ideal solution is for Volkswagen to utilise its MQB production infrastructure (which it uses for the Polo) to produce an MQB-based small crossover! Considering that Toyota South Africa Motors will soon put the Corolla Cross into production at its Prospecton plant, its Uitenhage-based archrival – VWSA – should be keen to meet the Japanese marque's challenge with a crossover of its own.
Picture credit: S. Baldauf/SB-Medien. Image watermarked at photographer's request.
However, it would be ideal if such a vehicle could be specced to compete directly with the slew of new budget crossovers in the market. The one thing all the aforementioned new models have in common is that they are produced in another developing country – India. As such, they do need to conform to stringent EU emissions regulations and their safety specifications are comparatively less comprehensive than their European counterparts. In short, they are produced to be reasonably equipped and solid vehicles that are as affordable as possible, because that is what their home market demands.
The Taigo , which was recently teased by Volkswagen, is indeed a small crossover based on the MQB-A0 platform, but it isn't all-new – it already exists in another developing country (Brazil) and is thriving there, where it is badged as the Nivus . VWSA recently confirmed the Taigo would be coming here next year (2022) and the firm’s mother company has said cars destined for Europe will be built in Spain.
The Taigo is known as the Nivus in the Brazilian market.
Perversely, given the trend in the South African market, Volkswagen SA does not really need a feature-packed (for lack of a better description, fancy) small crossover – the boutique T-Roc and high-end T-Cross derivatives already fulfil that role. To put it another way, the Mzansi market would be more receptive to a no-frills Brazilian-like spec " Nivus " (but called a Taigo , of course) for affordability’s sake.
The Nivus' interior is closely related to that of the Polo; this version includes an Active Info Display.
At this stage, it’s not yet confirmed where VWSA will source the Taigo from. Volkswagen/Skoda already builds the Taigun (effectively a stretched T-Cross, so essentially Creta competitor) in India, so it might be the Subcontinent, but Spain is more likely. However, given the bleak long-term outlook for the Polo (for the local market, at least as we know the model) and VWSA’s need for a budget crossover to compete with a slew of new, Indian-made offerings, why doesn’t VW just build the Brazilian-developed Taigo here, where it could be shoehorned on the existing MQB matrix?
Come to think of it, the Taigun – as more of a direct competitor to the Corolla Cross – could be a good fit for Mzansi as well…
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