Date: 2024-05-15 Page is: DBtxt003.php txt00017455
Sector: Auto Industry
Country: South Africa
Toyota increases localisation through expanded Hiace Ses’fikile plant
Peter Burgess
Automotive manufacturer Toyota South Africa Motors (TSAM) on Friday unveiled its upgraded Hiace Ses’fikile assembly plant, in KwaZulu-Natal, which manufactures South Africa’s most popular minibus taxi.
TSAM invested R454-million to upgrade the facility, which now uses 13 Kawasaki robots for welding and imports 17 fewer parts than before the upgrades.
The upgrades to the plant, which included the installation of a solar photovoltaic plant that generates about 970 MWh/y, has created 80 new jobs. The plant now employs 464 people.
Toyota manufacturing executive VP Nigel Ward noted that by making use of more locally produced parts, the company is now able to contribute an additional R25-million a year to the economy. He stated that the plant upgrades increased local value-add from 35% to 44%.
Ward highlighted that 70% of South African people use minibus taxis every day, equating to around 15-million daily trips using minibus taxis.
TSAM president and CEO Andrew Kirby said the Hiace market share has grown from 77% in 2015 to more than 90% this year.
The company produced 13 000 Hiace Ses’fikile vehicles last year, is targeting the production of 15 000 vehicles this year and 18 000 a year going forward.
Trade and Industry Minister Ebrahim Patel pointed out that South Africa produces about 140 000 vehicles a year. He welcomed TSAM’s investment into the plant, which he dubbed the “heart of Africa’s taxi production”.
Last year, government adopted an automotive master plan, aiming to produce an initial 600 000 vehicles a year by 2035 and ultimately contributing 1% of global vehicle production.
EDITED BY: CHANEL DE BRUYN, CREAMER MEDIA SENIOR DEPUTY EDITOR ONLINE