http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.21Change: -0.08
R/$ = 11.06Change: -0.15
Au 1222.82 $/ozChange: -13.30
Pt 1348.00 $/ozChange: -14.00
 
 
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 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|Africa|South Africa|Durban Plant|Automotive|Manufacturing|Minibus Manufacturing|Motors|Product|Products|Safer Products|Transport|Johan Van Zyl|Motors|Philip Taaibosch|Rob Davies|Motors|Diesel
|Africa|Diesel|Motors|PROJECT|Roads||Africa|||Automotive|Manufacturing|Motors|Products|Transport|Motors||Motors|
durban|africa-company|diesel-company|motors-company|project|roads|toyota-south-africa-motors|africa|south-africa|durban-plant|automotive|manufacturing|minibus-manufacturing|motors-industry-term|product|products|safer-products|transport-industry-term|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 Transport & Logistics News
Article contains comments
Premier David Makhura
The South African National Roads Agency Limited (Sanral) requested a meeting with Gauteng premier David Makhura on e-tolling before he set up a review panel, it said on Wednesday. "Perceptions that we were not prepared to enter into dialogue are therefore...
Leading South African aerospace company Aerosud Holdings announced on Wednesday that it had formed a strategic alliance with the Industrial Development Corporation (IDC). As a consequence, the IDC has taken a 26% shareholding in Aerosud Holdings. Aerosud Holdings has...
Construction on the bus rapid transport stations for Phase 1A of the Rustenburg Rapid Transport (RRT) project was likely to start before the end of the year, with the construction tenders currently being adjudicated, RRT said on Tuesday. Phase 1A of this four-phase...
More
 
 
Latest News
Ian Donald and Sullivan O’Carroll
Nestlé South Africa announced plans on Wednesday to invest a further R2-billion over the coming five years to grow its domestic manufacturing base, which would increasingly be used as a platform to supply into fast-growing sub-Saharan African markets. The Swiss food...
In a landmark R1.5-billion deal that precedes it planned listing on the JSE, Pivotal Property Fund has acquired “strategic” land and property assets from Standard Bank Properties, which includes Sandton’s landmark Alice Lane development. “Pivotal has acquired...
Lafarge Africa, Finland's Wartsila and the World Bank's IFC have agreed to build a 220 MW gas-fired power plant in Nigeria to boost electricity supplies, they said on Wednesday. The trio said in a statement their plan was to help fast-track increased power supplies...
More
 
 
Recent Research Reports
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.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
The board of UD Trucks Southern Africa (UDTSA) has announced the resignation of MD Jacques Carelse.   Long-time UD employee, corporate planning and marketing GM, Rory Schulz, has been appointed as acting MD while the process started to appoint a new MD. The Japanese...
There is a need to start planning another pumped storage scheme in South Africa. Much work has already been done at a site in the Limpopo province and the project was very close to being put out to tender at one stage. In 2008/9 the National Energy Regulator of South...
The Coega Development Corporation (CDC) is preparing to leverage its strategic coastal position to develop the Eastern Cape economy through proposed aquaculture development zones (ADZs), with a proposed R2-billion project aiming to contribute $278-million to the...
Completion of the ongoing construction of the 102 km Zomba–Jali–Phalombe–Chitakale road, in southern Malawi, has been extended from June  to December 15 because of persistent rains and difficulties in paying the contractor. The project is being undertaken by Kuwait's...
The Malawi government has awarded South African firm  Fischer Consortium the  contract to upgrade the Malawi Road Traffic Information System. The Directorate of Road Traffic and Safety Services at Malawi's Ministry of Transport and Public Works says Fischer...
 
 
 
 
 
 
 
 
 
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