Toyota nears completion of its $634 million South Africa investment as new Hilux pickup enters production
Toyota South Africa Motors (TSAM) has completed more than 77% of its 10. 4 billion rand ($634 million) investment programme to manufacture the next-generation Hilux pickup truck, reinforcing the countrys position as one of Toyotas most important production hubs outside Japan. | Business Insider Africa
Toyota South Africa Motors (TSAM) has completed more than 77% of its 10. 4 billion rand ($634 million) investment programme to manufacture the next-generation Hilux pickup truck, reinforcing the country's position as one of Toyota's most important production hubs outside Japan. Toyota South Africa Motors has completed more than 77% of its 10. 4 billion rand ($634 million) investment programme to manufacture the next-generation Hilux pickup truck, reinforcing the country's position as one of Toyota's most important production hubs outside Japan. The automaker also announced the start of pilot production at its Durban manufacturing plant, marking a major milestone in a project expected to be completed by June 2027, Reuters reported. The company's Chief Executive Andrew Kirby said the investment demonstrates Toyota Motor Corporation's confidence in South Africa despite growing challenges facing the global automotive industry. Preparing for a new era of manufacturingThe investment includes 3. 2 billion rand for factory upgrades, including a new logistics centre for imported parts and a chassis treatment and coating facility. Another 7. 2 billion rand has gone into preparing production of the new-generation Hilux through advanced robotics, manufacturing equipment and supplier tooling. Toyota is also constructing a new chassis frame welding facility featuring advanced welding technologies, with completion scheduled for June 2027. Once production fully ramps up, the company expects to manufacture around 140,000 Hilux units annually, supplying both the domestic market and export destinations across Europe and Africa. Responding to global competitionThe investment comes as global automakers race to modernise production in response to stricter emissions regulations and rapidly changing consumer expectations. European environmental standards are pushing South African vehicle manufacturers to upgrade factories with cleaner technologies, while Chinese brands such as GWM and Chery continue expanding aggressively across Africa's largest automotive market. Toyota's latest Hilux introduces upgraded driver-assistance features and enhanced safety technologies as competition in the pickup segment intensifies. A boost for South Africa's auto industryToyota's investment adds to a broader wave of automotive investment flowing into South Africa, which remains Africa's largest vehicle manufacturing hub and a key exporter to Europe. Business Insider Africa has previously reported on the country's efforts to attract fresh industrial investment as manufacturers reposition supply chains and expand local production. With the next-generation Hilux set to become one of Toyota's flagship export models, the Durban facility is expected to strengthen South Africa's role in the global automotive value chain while supporting thousands of jobs across manufacturing and component suppliers.