Toyota CEO: SA car industry could get R60bn boost in next 5 years

As much as R60 billion could be invested in the South African vehicle and component manufacturing industries in the next five years, according to Andrew Kirby, CEO of Toyota South Africa and president of National Association of Automobile Manufacturers of South Africa (NAAMSA).

In a recent speech at the annual NAAMSA Conference in Kyalami, Kirby said the seven largest vehicle manufacturers are considering  R40 billion in direct investments, with an additional R20 billion earmarked for component making.

The industry wants to increase the use of locally-produced components in vehicles.

"We expect local procurement to grow by R12.6 billion in the next five years together with a 14% increase in direct employment, which equates to creating another 16 000 jobs, mainly in the component manufacturing sector as local content grows from 39% to at least 42%."

The component sector needed to urgently develop smaller  suppliers, Kirby added, and the industry wants to help establish 500 smaller suppliers with 130 of them black owned. The industry also welcomes an initiative by the local steel industry to investigate the production of automotive-grade steel in SA.

He stressed the importance of being globally competitive in terms of cost, quality, and reliability of supply as several other countries were eyeing South Africa's automotive export markets.

"Growing production volumes, increasing localisation significantly and using the latest technologies in all aspects of the business are vital to transform the South African automotive industry and to this end the aim was increase output from the 610 000 vehicles made in 2018 to 800 000 in 2023,"  Kirby said.

July's trade data showed a 22% monthly increase in exports of vehicles and transport equipment, to the value of R3 billion. 

Some 407 000 people are employed in the vehicle industry.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
17.77
-0.8%
Rand - Pound
20.13
+0.5%
Rand - Euro
17.57
+0.2%
Rand - Aus dollar
11.55
-0.7%
Rand - Yen
0.12
-0.4%
Gold
1,715.78
-0.6%
Silver
20.66
-1.9%
Palladium
2,260.50
-2.7%
Platinum
921.00
-1.3%
Brent Crude
91.80
+3.2%
Top 40
59,202
-1.1%
All Share
65,613
-1.1%
Resource 10
63,687
-1.4%
Industrial 25
79,239
-1.1%
Financial 15
13,961
-0.7%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders