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

Andrew Kirby is the CEO of Toyota SA. Picture: Lettie Ferreira
Andrew Kirby is the CEO of Toyota SA. Picture: Lettie Ferreira

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.

ZAR/USD
16.96
(+0.34)
ZAR/GBP
21.17
(+0.36)
ZAR/EUR
19.08
(+0.51)
ZAR/AUD
11.76
(+0.18)
ZAR/JPY
0.16
(+0.52)
Gold
1772.50
(+0.38)
Silver
17.92
(-0.22)
Platinum
809.00
(-1.22)
Brent Crude
42.09
(+1.84)
Palladium
1899.00
(+0.13)
All Share
54617.19
(+1.54)
Top 40
50309.77
(+1.49)
Financial 15
10214.89
(+2.12)
Industrial 25
76156.33
(+1.23)
Resource 10
50768.18
(+1.58)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
I'm not really directly affected
18% - 1545 votes
I am taking a hit, but should be able to recover in the next year
23% - 2008 votes
My finances have been devastated
34% - 3014 votes
It's still too early to know what the full effect will be
25% - 2191 votes
Vote