The line-off of the ninth-generation Toyota Hilux at the company’s Prospecton plant in Durban is underpinned by a major R10.4bn investment from Toyota South Africa Motors (TSAM).
Image credit: Imran Salie
President Cyril Ramaphosa was due to be present at the ceremonial line-off yesterday,16 July, but could not make it and apologised for his physical absence in a video seen by attendees at the occasion, which included Minister of Trade, Industry and Competition Parks Tau, Fumio Shimizu, the ambassador of Japan to South Africa, and Andrew Kirby, president and CEO of TSAM.
Of the R10.4bn investment, R3.2bn has gone into infrastructure at the facility, which includes a new logistics warehouse (R1bn) and a new chassis facility (R2.2bn).
A coated chassis seen at the new chassis frame line at the Prospecton plant | Image credit: Imran Salie
The remaining amount of R7.2bn covers production: R3.8bn for TSAM’s own production setup and R3.4bn for supplier tooling. According to TSAM, 77% has already been spent, with completion expected by Q2 2027.
Added to this investment is an additional R2bn invested by Toyota’s supplier partners in their own facilities, tooling and capability development. Ramaphosa noted this R2bn investment in his speech, and remarked that it’s how small and medium enterprises in the country grow.
“I understand that approximately one third of the investment has been directed towards strengthening local supplier capacity, as well as suppliers themselves have invested an additional R2bn to expand localisation.
“That is how resilient industrial ecosystems are built. That is how domestic manufacturing capabilities are deepened. That is how small and medium enterprises are empowered to grow. And that is how sustainable economic development is achieved,” he said.
While the investment is not a direct injection of funds for SMEs, it’s the localisation of Toyota’s tier one suppliers that would create the need for sourcing in South Africa rather than from abroad. The result is an opening further down the supply chain for smaller, local businesses to be drawn in as sub-suppliers.
Ramaphosa also acknowledged Toyota’s investment and spoke of the importance of the automotive industry to South Africa.
“The automotive industry remains one of the great pillars of South Africa’s industrial economy. It contributes around 5% of our gross domestic product.
“It supports more than 150,000 direct manufacturing jobs and over half a million jobs across the region. South Africa is today the world’s 21st largest vehicle producer.
“These achievements have not happened by chance. They’ve been built over decades through partnership, government, manufacturers, organised labour, as well as suppliers. It is precisely this partnership that will enable us to compete successfully in a rapidly changing global automotive industry,” he said.
Minister Tau, addressing the ceremony ahead of Ramaphosa’s video message, pointed out that Toyota South Africa’s competition doesn’t only come from rival carmakers, but from within Toyota’s own global network.
“Yes, they compete amongst each other, but the most important competition for Toyota South Africa is to compete with its counterparts throughout the world,” Tau said.
Hilux heritage
Production of the Toyota Hilux at the Prospecton plant started 56 years ago, and since then more than 2.9 million Hilux vehicles have been produced, according to TSAM. The Hilux has been exported to 74 international markets across Africa and Europe.
Kirby said the following on the Hilux at the line-off celebration.
“The ninth-generation Hilux is not simply the next Hilux. It is the next chapter in South African manufacturing.
“Every new generation presents an opportunity to elevate our technology, strengthen our supplier base, deepen localisation, develop our people and improve the competitiveness of our operations. The R10.4bn investment reflects Toyota’s enduring confidence in South Africa, its people and its manufacturing future.”
“When Toyota invests, the impact extends far beyond the vehicles we build. It boosts local suppliers, creates employment, develops skills and contributes to the growth of an entire industrial ecosystem. Every Hilux that leaves our production line carries the contribution and pride of thousands of South Africans.”