Toyota begins new Hilux production at its South African factory

Toyota South Africa Motors (TSAM) has started an important new chapter in South Africa, kicking off the production of the next-generation Hilux.

The carmaker held an opening ceremony at its Prospecton manufacturing plant in Durban, attended by high-ranking officials from South Africa and Japan.

The Toyota Hilux has been built at Prospecton for 56 years, which has played a key role in establishing the bakkie as South Africa’s best-selling vehicle.

In order to accommodate the new, ninth-generation models, Toyota has invested R10.4 billion in the Durban factory, marking the single largest investment in the history of TSAM.

Speaking at the ceremony, Andrew Kirby, President and CEO of TSAM, 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 event was also attended by President Cyril Ramaphosa, Minister of Trade, Industry and Competition Parks Tau, Fumio Shimizu, Ambassador of Japan to South Africa, senior government representatives, business leaders and executives from Toyota Motor Corporation.

TSAM said that the investment reinforces the company’s long-term commitment to South Africa as a globally competitive automotive manufacturing hub.

Since production on the Hilux began 56 years ago, more than 2.9 million units have made their way off the assembly line, with exports reaching 74 international markets across Africa and Europe.

The factory is supported by an extensive industrial ecosystem that supports nearly 27,000 across the supply chain, including 4,300 people directly employed by Toyota.

This network includes 101 Tier One suppliers with annual spending exceeding R15 billion.

A massive upgrade

The R10.4 billion investment programme includes three main upgrades for the plant: a new 29,300m² Toyota Logistics Centre, a state-of-the-art Chassis Frame Coating Facility and a new Chassis Frame Welding Facility, the latter of which will only be completed in June 2027.

Of this sum, R3.2 billion was directed towards local supplier development, supporting domestic value chains and localisation objectives.

TSAM invested a further R7.2 billion to prepare for the next-gen Hilux, which required new, advanced manufacturing technologies and production equipment.

“Toyota’s supplier partners have also invested an additional R2 billion in their own facilities, tooling and capability development,” said the company.

Prospecton is Toyota’s oldest factory outside of Japan. It remains an integral part of the company’s global business strategy, producing popular models like the Hilux, Fortuner, Corolla Cross, and Hiace.

“Today’s milestone celebrates not simply another model rolling off an assembly line. It celebrates Toyota South Africa’s continued confidence in our country and in its people,” said President Cyril Ramaphosa.

“The R10.4 billion investment in the new-generation Hilux programme demonstrates precisely the type of investment that South Africa seeks to attract.”

“These world-class facilities further strengthen Prospecton’s position within Toyota’s global manufacturing network. But the true measure of this investment is not found in machinery or buildings. Its true value lies in the opportunities it creates.”

The ninth-generation Hilux programme has also driven skills development in South Africa via the Toyota Manufacturing Academy and Future of Manufacturing initiative.

An additional 8,500 people are employed by Toyota’s operations in South Africa through its supplier, logistics, and dealer networks.

Ninth-generation Toyota Hilux ceremony at TSAM’s Prospecton plant in Durban