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Toyota South Africa Motors investment programme, South Africa – update

Image of President Cyril Ramaphosa and the Toyota Corolla Cross

1st April 2022

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Toyota South Africa Motors (TSAM) investment programme.

Location
Prospecton, in KwaZulu-Natal, and Gauteng, South Africa.

Project Owner/s
TSAM.

Project Description
TSAM's investment programme straddles several areas of the local company’s operations.

Most of the investment has been allocated to prepare for the production of the new Corolla Cross model at the Prospecton plant. The Corolla Cross is based on the acclaimed new Corolla Toyota New Global Architecture platform and will be built on Toyota’s passenger car production line alongside the Corolla Quest

The new vehicle will include a Toyota hybrid synergy drive model. The new model represents an important investment for Toyota and is a key part of Toyota’s long-term growth plans. The vehicle system automatically switches between electric power and conventional engine power, depending on conditions.

Other investments include upgrades to the local production of the Hiace Ses’fikile minibus, as well as an increase in the production volume of this model from 14 000 to 18 000.

A packing plant will also be established to support knock-down production of the Hilux bakkie, in Kenya.

TSAM also plans to double the size of its Atlas warehouse, in Gauteng, from 40 000 m2 to 80 000 m2. When completed, the facility will be the largest automotive parts warehouse in the southern hemisphere.

The carmaker also has a number of ongoing projects, which include investment in the production of the new Corolla Quest model and several facilities upgrades at the plant.

Potential Job Creation
The new production line will add 575 new jobs at the site and 1 200 new jobs in TSAM's supplier base to accommodate the Corolla Cross assembly. 

Upgrades to the local production of the Hiace Ses’fikile minibus is expected to create 270 new jobs.

Capital Expenditure
The company has spent close to R6.5-billion to establish what is a flexible, high-tech assembly plant. 

Planned Start/End Date
The production line was launched in 2021.

Latest Developments
TSAM officially launched the Corolla Cross production line at its assembly plant on October 26, 2021.

The plant can produce 111 Corolla Cross vehicles a day, or about 30 000 units a year, for export to more than 40 countries. 

The facility now produces what is Toyota's first hybrid electric vehicle (EV), which is an important step towards a carbon neutral future. 

TSAM continues to produce its signature Hilux and Fortuner vehicles at the assembly plant.

The company plans to ramp up its projected hybrid vehicle production if the availability of batteries improves.

It also plans to invest R2.5-billion in its carbon-neutrality efforts, including expanding its current installed solar photovoltaic capacity from 5 MW to 30 MW. It will buy the balance of its power requirements from renewable-energy generators by 2028. 

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
TSAM, tel +27 11 809 9111.

Edited by Creamer Media Reporter

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