Toyota South Africa Motors (TSAM) will see its exports into Africa drop by around 20% this year over last year, owing largely to policy changes in Algeria and Nigeria.
TSAM president and CEO Dr Johan van Zyl says the Algerian government has shifted its support from entrepreneurs buying light commercial vehicles to housing – a move which has seen exports of the Durban-made Hilux bakkie into the North African country decline substantially.
Nigeria, in turn, has doubled import tariffs on new vehicles in an effort to encourage local assembly.
Van Zyl says Angola has also increased its tariffs. However, this move has had a small impact on TSAM exports, as Angola is not yet a significant new-vehicle market in Africa.
On a more positive note, South African Hilux sales in Europe have steadily increased as economic recovery in this region continues. The influence of a prolonged Russia-Ukraine conflict remains unknown, however, as does the effect of sanctions between the regions.
TSAM also exports vehicles to Russia.
Van Zyl, who heads up Toyota in Africa, says the Japanese carmaker will study the economic merits of producing vehicles in Nigeria.
He does not, however, want to comment on the timeframe of such a study.
“Once we are ready, we will make an announcement. Nigeria is a big market, with a huge population and a big economy.”
Nissan has already moved to establish an assembly plant in Nigeria.
Van Zyl notes that more and wider free-trade agreements within Africa will help vehicle producers in South Africa expand their business into the continent.
He regards the biggest threat to TSAM’s business the proposed free-trade agreement between North Africa and Europe.