Big capital injection is aimed at future-proofing Toyota’s manufacturing operations in South Africa.
Toyota South Africa Motors (TSAM) has confirmed further investment into KwaZulu-Natal by Toyota. The R10.4 billion announcement was pledged earlier this year, but was formalised at a event held at TSAM’s plant in Prospecton in the second week of July 2026.
The reason behind the large investment is to adapt South African vehicle manufacturing to the global market. Most of the brands who assemble cars in South Africa also export to other markets and as other countries shift towards new-energy vehicles, the manufacturing needs to change to support this.
Many of the OEMs have sounded the alarm, warning of being left behind in favour of countries which have already adapted to changing market demands.
Andrew Kirby, President and CEO of Toyota South Africa Motors, said: “The ninth-generation Hilux is not simply the next Hilux. It is the next chapter in South African manufacturing. Every new generation presents an opportunity to elevate our technology, strengthen our supplier base, deepen localisation, develop our people and improve the competitiveness of our operations. The R10.4 billion investment reflects Toyota’s enduring confidence in South Africa, its people and its manufacturing future.”
The Toyota Plant at Prospecton, which is the oldest Toyota facility outside of Japan, currently manufactures the Hilux, Fortuner, Corolla Cross, Hiace/Sesfikile minibus as well as Hino Trucks. It employs between around 8 500 people depending on shifts and demand, with thousands more employed in the surrounding businesses as part of the supply chain and logistics. The plant has the capability to produce over 200 000 vehicles a year.
Hilux accounts for 101 Tier One suppliers, an annual supplier spend exceeding R15 billion, nearly 27 000 jobs across the supplier network and more than 4 300 direct employees at the Prospecton plant.
The investment breakdown:
- Toyota has invested a further R7.2 billion in production preparation for the 9th Generation Hilux, including advanced manufacturing technologies, production equipment and supplier tooling.
- Toyota’s supplier partners have also invested an additional R2 billion in their own facilities, tooling and capability development.
- A new 29 300m² Toyota Logistics Centre, a state-of-the-art Chassis Frame Coating Facility and a new Chassis Frame Welding Facility, scheduled for completion in June 2027.
The Toyota investment is not just Hilux-focused either as resources have been allocated to employee training programmes and skills development, like the Toyota Manufacturing Academy where the next generation can start their journey in the motor manufacturing industry.
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