Toyota South Africa Motors (TSAM) has launched the volume production of the new Corolla at its Durban plant.

The new model is the eleventh generation of this best-selling car.

TSAM invested R1-billion at its Durban plant, as well as in the development of its staff and the company’s parts supplier network, to enable manufacturing of the new Corolla in left- and right-hand-drive variants, says TSAM president and CEO Dr Johan van Zyl.

TSAM no longer exports the Corolla to Europe, as was the case with the previous model, and will only serve the sub-Saharan market.

Turkey now supplies the European market with the new Corolla.

Van Zyl says production volumes for the local market should reach in excess of 12 000 units a year, as TSAM hopes to sell more than the roughly 1 000 units a month it sold of the pre- vious Corolla.

TSAM is also confident of exceed- ing previous Corolla model export sale volumes in sub-Saharan Africa.

Van Zyl does not quantify these volumes.

The new Corolla has 50% local content, similar to the previous model, and TSAM will work to increase this over the vehicle’s life cycle.

Second Round of Investment
TSAM’s R1-billion investment is the second to be announced in the current phase of capital expansion at TSAM, which started in 2012 with the opening of a R363-million new parts distribution centre in Gauteng.

The new round of investment followed a R8-billion programme, completed in 2008, in which TSAM increased its production capacity to 220 000 units a year.

In addition to the Corolla, TSAM produces the Fortuner sports utility vehicle and Hilux bakkie in Durban, while also assembling a minibus taxi and a range of trucks.

Van Zyl says the 2014 Corolla is the first vehicle TSAM is manufacturing under government’s new Automotive Production and Development Programme.

He says it is important for TSAM to use this support programme to build its local supplier base and to stimulate job creation.

He also emphasises that “a stable environment is paramount in the production of vehicles”.

While last year proved volatile, with the local industry having faced a seven-week strike, Van Zyl says, all stakeholders have to work together to “create a stable work environment”.

This will ensure that the local arm of the Japanese vehicle manufacturer acts as a reliable export base for Europe and Africa.

“The decision to invest in the production of the new Toyota Corolla is one [that was] taken well in advance of the start of production, and one that considers the future economic pros- pects of South Africa and that of major Corolla export markets. We believe that despite the cur-rent economic slowdown and currency pressures, the South African-built Corolla will prove to be a good long-term investment,” notes Van Zyl.