Record R10.4bn Toyota Hilux South Africa production investment approved
· Citizen
Having debuted the latest-generation Hilux earlier this month, Toyota South Africa Motors has officially approved a new R10.4 billion investment in production, the largest single-product venture in the country’s history.
Record figures
The investment into its Prospecton plant outside Durban, which currently also produces the Corolla Cross, HiAce and Fortuner, will be split into two segments over the next 12 months.
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The biggest share, R7.2 billion, is for production, factory re-tooling, technology and equipment requirements for the Hilux itself, while the remaining R3.2 billion relates to supplier development, product localising and the support of domestic value chains.
The first locally assembled new generation Toyota Hilux drives out of the Prospecton plant in Durban. Picture: ToyotaOn top of this, a further R2 billion has been invested by Toyota’s supplier partners in their own facilities and tooling for the new Hilux’s production.
Lying at the heart of the biggest share of the investment is a new 29 300m² development comprising three infrastructure projects: a logistics centre, a chassis frame coating facility and a brand-new chassis frame welding area.
Clear message
“The ninth generation Hilux is not simply the next Hilux. It is the next chapter in South African manufacturing,” Toyota South Africa Motors CEO and president, Andrew Kirby, said.
“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 investment reflects Toyota’s enduring confidence in South Africa, its people and its manufacturing future.”
Benefits
Accordingly, the investment will support 101 tier one suppliers, 4 300 jobs working directly on the Hilux production lane and 27 000 jobs across the various supplier networks.
“Toyota South Africa Motors continues to demonstrate the quality, resilience and manufacturing excellence that define Toyota operations around the world,” Africa fivision and tegional CEO of Toyota Africa, Shinichiro Otsuka, said.
“The ninth generation Hilux programme reflects Toyota Motor Corporation’s confidence in South Africa and our belief in the capability of its people.
“Through continued investment in technology, skills development and localisation, South Africa remains an important strategic production base for Toyota globally.”
Kirby concluded by saying: “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.
“The generation before us built one of Africa’s greatest automotive manufacturing success stories. Our responsibility is to ensure that the generation after us inherits one that is even stronger. Today’s investment is an important step towards that future.”
Part of history and heritage
Currently one of Toyota’s oldest factories outside Japan, with operations having started in 1961, around 2.9 million Hilux models have been produced not only for South Africa, but also export markets.
At present, only Xtra and double cab guise versions are offered, though the single cab Hilux will make its debut in 2027, along with a revised version of the 2.4 GD-6 engine as the Hilux only launched with the 2.8 GD-6 mill with or without mild-hybrid assistance.