Toyota South Africa Motors (TSAM) officially unveiled new production lines for the new Hilux and Fortuner at the company's Prospecton, Durban plant today (24 May), according to a press release on Engineering News. South African president Jacob Zuma unveiled the new production line in Durban. Commenting on the launch, Zuma said, "The investment by the Japanese manufacturer Toyota is a demonstration of the continued confidence that global automotive producers have in South Africa as an investment destination and the supportive policy environment that the country offers". Toyota expects the latest additions in its vehicle line-up and investment to create over 4,000 jobs. Total employment in the plant already exceeds 8,000 employees.
Significance: The launch of new production lines at the Prospecton plant is part of Toyota's ZAR6.1 billion (USD405 million) investment to expand its manufacturing operations in the country. In February, Toyota began production of the eighth-generation Hilux in the country, with the company targeting to reach annual production of 100,000 units. Toyota has invested ZAR4 billion (USD255.84 million) to produce the latest-generation Hilux in South Africa. According to media reports quoting TSAM's president Andrew Kirkby, the automaker invested ZAR2.6 billion to produce the previous-generation Hilux. The Hilux has been the best-selling Toyota model in South Africa. According to IHS Automotive forecasts, total production of the Hilux nameplate in South Africa will grow by 50% year on year (y/y) to 81,710 units, while sales of the Fortuner will rise 7.2% y/y to 12,354 units in 2016. Automakers are strengthening their production bases in Africa as the prospect of selling to the 50-plus markets in the continent gains momentum. South Africa has become a major production base for automakers keen to supply markets within Africa as well as exports to markets in Europe.
