http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.71Change: -0.07
R/$ = 12.38Change: -0.07
Au 1173.50 $/ozChange: 4.70
Pt 1065.00 $/ozChange: -17.00
 
 
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 Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 06, 2012

Toyota starts taxi assembly, DTI seeks others to follow

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



Toyota South Africa Motors (TSAM) on Friday 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 would see the assembly of 40 taxis a day on a single shift operation, or 10 000 units a year.

The investment followed 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 that 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 allowed SKD assembly of minibus taxis to qualify for incentives.

Under normal circumstances, the AIS, which was a chapter of the new Automotive Production and Development Programme, would support 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 would expect taxi assemblers taking advantage of the scheme to convert to CKD taxi assembly, which demanded more localisation.

Davies said this "flexibility" was allowed in order to "kickstart" minibus manufacturing in South Africa.

He added that a local taxi assembly industry could 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 was also pushing for preference to be given to locally assembled taxis under the Department of Transport's taxi recapitalisation programme, which provided financial support to the taxi industry in 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, less than a 100 were made in South Africa. This was a situation we desperately needed to turn around."

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

Davies said he believed the support programme 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."

MORE TO COME?

TSAM assembly division 3 VP Fezile Myoli said the local arm of the Japanese manufacturer would produce two taxi derivatives in Durban, namely the 2.5-litre diesel and 2.7-litre 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 said it took 18 months to roll out the assembly line. Local content on the project was low at the start of the project, with only the starter motor, glass and battery locally sourced.

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

South African National Taxi Council (Santaco) general secretary Philip Taaibosch noted that it had 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 had 187 000 members, buying around 35 000 new taxis a year, he noted.

He said taxi owners on average replaced their vehicles every 15 years, but added that Santaco had been pushing for a replacement cycle of 7 years.

"The industry is still growing. It had never stopped growing."

The pricing of the Ses’fikile remained the same as the imported product, with the added seat provided at no extra cost.
 

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Automotive News
This six-page brief is a synopsis of key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, revisions and expansion to sector support, competitiveness, and prospects for the sector.
Development financier Eastern Cape Development Corporation (ECDC) executive Noludwe Ncokazi on Friday said the organisation had the “huge responsibility of ensuring business continuity”, following the resignation of ECDC subsidiary Automotive Industry Development...
ENERGY-EFFICIENT PETROCHEMICALS Engen supplies energy-saving hydraulic fluids and synthetic lubricants to the industrial sectors and provides products for petrol and diesel engines
Responding to the energy sector’s need to reduce energy consumption, African energy multinational Engen will be exhibiting new energy-saving hydraulic fluids and synthetic lubricants, which will soon be introduced into the company’s product offering, at this year’s...
More
 
 
Latest News
Updated 2 hours 20 minutes ago State-owned entity Transnet National Ports Authority (TNPA) has started the registration process for its integrated port management system (IPMS), which is scheduled to go live in the Port of Durban at the end of July. TNPA started issuing registration instructions...
Updated 2 hours 53 minutes ago The development of rural road infrastructure and public transport services remains critical to the delivery of South Africa’s – and other African States’ – developmenta agenda, requiring meticulous planning that ties in with the socioeconomic needs of the host...
Updated 2 hours 56 minutes ago South Africa-focused mineral explorer and developer White Rivers Exploration (WRE) has signed a memorandum of understanding (MoU) with Windfall Energy to facilitate the joint exploration and development of WRE’s Heilbron and Kroonstad gas assets in the Witwatersrand...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
NHLANHLA NENE The main constraints to economic growth are domestic
Finance Minister Nhlanhla Nene earlier this month stated that, while South Africa’s 2015 economic growth target of 2% was achievable, it was not enough to deliver the tax revenue needed to combat the country’s challenges.
The World Steel Association has published the 2015 edition of the World Steel in Figures report, which shows an increase in steel production as well as provides an overview of steel industry activities from crude steel production to apparent steel use.
The 25-year master plan for Gauteng’s Aerotropolis project will go through a process of approval and adoption during June and July, says Aerotroplis project manager Jack van der Merwe. “We are also in the process of putting together a special purpose vehicle (SPV) to...
SOLAR PANELS The existing buildings in the Coega Industrial Development Zone lent themselves well to rooftop solar panel installations
The Coega Development Corporation (CDC) plans to fit 15 of its buildings, totalling 127 000 m2 of roof space, in the Coega Industrial Development Zone (IDZ), in the Eastern Cape, with solar panels.
The Supreme Court of Appeal’s (SCA’s) November 2014 judgment, ordering steel producer ArcelorMittal South Africa (AMSA) to hand over the 2003 Environmental Master Plan for its Vanderbijlpark steel plant to environmental pressure groups, confirmed the right of civil...
 
 
 
 
 
 
 
 
 
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
Subscribe Now for $96 Close
Subscribe Now for $96