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 are 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 showcased its expanded parts distribution centre in July 2022 with construction having started on the centre in January 2020. The Toyota Africa Parts Centre (TAPC) is now the biggest of its kind in the southern hemisphere.

The facility comprises inbound, storage, outbound and distribution processes, with TSAM receiving and sorting about 84 000 parts daily, from 220 local suppliers and four international suppliers.

TSAM undertakes daily deliveries to all its 277 dealers in South Africa and neighbouring countries, including Namibia, Botswana and eSwatini.

TAPC consolidates what used to be two warehouses for TSAM and allows for more efficient customer service, particularly as the company wants to increase its supply into more African markets.

TAPC now forms part of five distribution hubs globally covering Toyota’s component distribution.

The TAPC facility comes complete with solar photovoltaic rooftop capacity of 475 kW, which the company plans on expanding to 1.5 MW by the end of 2022.

TSAM also plans on adding battery storage capacity to the building in 2023, which will take the facility off-grid.

Key Contracts, Suppliers and Consultants
None stated.

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