Toyota Invests R10.4 Billion in South African Hilux Production

Toyota South Africa Motors has commenced local production of the ninth-generation Hilux at its Prospecton plant in Durban. The move represents the largest single product investment in the company's South African history, totaling R10.4 billion. This funding includes R7.2 billion for production preparation and R3.2 billion for local supplier development, while an additional R2 billion was invested by local suppliers to expand localization.

Cyril Ramaphosa, the President of South Africa, presided over the official line-off launch and described the investment as a vote of confidence in the national economy. He noted the automotive industry's significant contribution to the country, accounting for approximately 5% of GDP and supporting over 115,000 direct manufacturing jobs. The plant is designed to produce 140,000 vehicles annually for domestic use and export to more than 70 destinations, with new logistics and chassis facilities expected by June 2027.

Despite the expansion, Toyota South Africa Motors CEO Andrew Kirby warned that rising labor, tax, and logistics costs, along with competition from low-priced Chinese imports, are making South Africa less competitive. Kirby urged the government to implement policies supporting the transition to hybrid and new-energy vehicles to maintain export demand in the United Kingdom and European Union. In response, the government is currently focusing on incentives for component manufacturing and battery value-chain development.