http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.72Change: 0.03
R/$ = 11.04Change: -0.08
Au 1195.17 $/ozChange: -3.99
Pt 1205.50 $/ozChange: -24.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 20, 2012

SA amends incentive to help restart minibus taxi assembly

Back
DURBAN|Africa|Diesel|Motors|PROJECT|Roads|Toyota South Africa Motors|Africa|South Africa|Toyota’s Durban Plant|Automotive|Manufacturing|Minibus Manufacturing|Motors|Product|Products|Safer Products|Service|Transport|Johan Van Zyl|Motors|Philip Taaibosch|Rob Davies|Motors|Diesel
|Africa|Diesel|Motors|PROJECT|Roads||Africa|||Automotive|Manufacturing|Motors|Products|Service|Transport|Motors||Motors|
durban|africa-company|diesel-company|motors-company|project|roads|toyota-south-africa-motors|africa|south-africa|toyotas-durban-plant|automotive|manufacturing|minibus-manufacturing|motors-industry-term|product|products|safer-products|service|transport-industry-term|johan-van-zyl|motors-person|philip-taaibosch|rob-davies|motors|diesel
© Reuse this



Toyota South Africa Motors (TSAM) has officially restarted minibus taxi assembly in South Africa with a R70-million investment to enable semi-knockdown (SKD) production of a 16-seater Quantum Ses’fikile – one seat more than the previously imported 15-seater minibus.

The investment created 90 direct jobs at Toyota and 210 jobs at suppliers and service providers, and will see the assembly of 40 taxis a day on a single shift operation, or 10 000 to 15 000 units a year.

The investment follows a request by government for TSAM to restart local production of a local minibus taxi, halted in 2007.

Trade and Industry Minister Dr Rob Davies noted at the opening of the assembly line at Toyota’s Durban plant that the investment would receive government support under the Automotive Investment Scheme (AIS), through a new mechanism that allows SKD assembly of minibus taxis to qualify for incentives.

Under normal circumstances, the AIS, which is a chapter of the new Automotive Production and Development Programme, supports only completely knockdown (CKD) assembly.

“We are amending the AIS to provide support levels to this endeavour. It will be completed in the next few weeks,” said Davies.

He noted, however, that SKD assembly would only be supported until March 2015, by which time government expects taxi assemblers to take advantage of the scheme to convert to CKD taxi assembly, which demands more localisation.

Davies said this “flexibility” is allowed in order to “kick-start” minibus manufacturing in South Africa.

He added that a local taxi assembly industry can feed vehicles into a broader African market, especially under a pending free trade agreement, still being negotiated, between 26 countries on the continent. His department is also pushing for preference to be given to locally assembled taxis under the Department of Transport’s taxi recapitalisation programme, which provides financial support to the taxi industry when replacing their vehicles with newer, safer products.

The South African registered minibus taxi industry numbered 280 000 units in 2009, with the yearly purchase of new taxis at 19 000 units in the same year, said Davies.

“Of these, fewer than 100 were made in South Africa. This was a situation we desperately needed to turn around.”

The local minibus industry contributes R30-billion to South Africa’s gross domestic product a year, transporting nine-million people.

Davies said he believed the support pro- gramme for minibus taxi assembly could secure R1-billion in investment in total, creating around 2 000 jobs.

“We would like to see other companies follow suit and bring minibus production to South Africa.”


TSAM assembly division 3 VP Fezile Myoli says the local arm of the Japanese manufacturer will produce two taxi derivatives in Durban, namely the 2.5 ℓ diesel and 2.7 ℓ Ses’fikile petrol models.

“It really makes sense to produce it here because of its popularity.”

It is estimated that there are currently 250 000 Toyota minibus taxis operating on South Africa’s roads.

Myoli says it took 18 months to roll out the assembly line. Local content on the project is low at the start of the project, with only the starter motor, glass and the battery locally sourced.

TSAM president and CEO Dr Johan van Zyl says a second phase in the taxi project may see the assembly line incorporate other product derivatives, such as a panel van. It will also include greater local content.

South African National Taxi Council (Santaco) general secretary Philip Taaibosch notes that it has always been the council’s ambition to again see taxis assembled in South Africa, especially as it contributed to job creation.

“We must compliment Dr Van Zyl and Toyota on the decision they have made to again assemble taxis locally. We are delighted”.

Santaco has 187 000 members, buying around 35 000 new taxis a year, he noted.

Edited by: Martin Zhuwakinyu
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Automotive News
 
Latest News
Updated 2 hours 46 minutes ago Increased maintenance costs, poor rolling mill yields and strike action have widened Evraz Highveld Steel’s operating loss, from R149-million in the nine months ended September 30, 2013, to R483-million for the comparative 2014 period. The company added on Monday...
Updated 2 hours 47 minutes ago Energy Minister Tina Joemat-Pettersson has misled Parliament and should be suspended pending an investigation, the DA said on Monday. "Reports indicate that the minister was involved in recommending and appointing Mr Tshepo Kgadima as chairman of the board of...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
JSE-listed real estate investment trust (REIT) Rebosis Property Fund achieved a distribution growth of 8.1% to 99.45c per linked unit in the financial year ended August 31, despite volatile market conditions.
JAMES ROBERTS The MOM incubator was designed to help babies in developing nations who were dying in conflict-struck nations or who do not receive hospital care
A low-cost, inflatable incubator won this year’s international James Dyson design award, which aims to encourage and inspire the next generation of design engineers.
The World Bank released its ‘Doing Business 2015: Going Beyond Efficiency’ report last month and ranked South Africa 43 out of 189 global economies for its ease of doing business, with Singapore topping the rankings.
Air Products South Africa officially launched its R300-million Eastern Cape air- separation unit (ASU), at its new manufacturing facility in the Coega Industrial Development Zone (IDZ), earlier this month. It is the second facility that Air Products launched in South...
BMW South Africa (SA) has signed a power purchasing agreement with energy company Bio2Watt. The offtake partnership will bring renewable energy to the carmaker’s Rosslyn plant, north of Pretoria.
 
 
Engineering support services company Babcock Africa, sole importer and distributor of DAF trucks to the Southern African market, announced in October that it had established a dedicated finance company, Babcock Financial Services (BFS). “This development will give...
“Based on the information available to us at present, we would strongly recommend that fleet managers budget for a 12% to 13% increase in fuel [prices] for 2015,” says Eqstra Fleet Management (EFM) MD Murray Price. In its review of fuel prices over the past few...
Public confidence in Gauteng tender processes is expected to improve with the newly launched Gauteng Open Tender Process, which will be the piloted by the provincial Department of Roads and Transport.
More
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks