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Isuzu invests R500 million in South Africa

Having already invested heavily in its local operations, Japanese bakkie builder Isuzu has injected another R510 million in supplier tooling and capability development to strengthen South Africa’s vehicle manufacturing sector.

The investment forms part of Isuzu’s development programme for the new D-Max, enabling local suppliers to expand production capacity and enhance manufacturing capabilities to meet Isuzu’s global quality standards.

A total of 729 vendor tools have been developed across Isuzu Motors South Africa’s (IMSAf’s) supplier network, supporting the production of 250 locally sourced components for the new bakkie range.

IMSAf Executive Vice President of Procurement and Logistics, Komane Pitso, explained that developing capable and competitive local suppliers is fundamental for the sustainability of the local automotive industry.

“Our investment extends beyond vehicle production. It is about creating opportunities for suppliers to grow, strengthening manufacturing capability and building a resilient supply chain that can support future vehicle programmes,” he said.

The supplier development programme has benefitted the Eastern Cape’s manufacturing sector by contributing to job creation, skills development, and technology transfer.

This includes VSL Manufacturing, which created 52 new jobs and manufactures 25 large pressed-skin panels for the new D-Max, including the bonnet, body side panels, front and rear doors, and tailgates.

Isuzu’s local chassis supplier, Praga, also expanded its operations, creating 34 new jobs to support the production of stamped and welded chassis frame assemblies supplied directly to IMSAf’s plant in Gqeberha.

The programme has accelerated the technical capacity within South Africa’s automotive supplier base, which Pitso called a major enabler of skills development.

“Throughout the localisation journey, there is extensive knowledge transfer with our international counterparts covering quality planning, process control, dimensional validation, tooling development and production readiness,” he said.

“Ultimately, localisation is not only about producing parts locally, but about building sustainable industrial capability in South Africa.”

This supplier development included input from several international divisions of Isuzu, including those from Japan and Thailand.

Increasing local D-Max parts production

Isuzu’s new D-Max programme in South Africa has achieved the localisation of 250 parts across its supplier network, further increasing local content beyond what was achieved under the previous programme.

Components manufactured locally now include the bakkie’s bonnet, grille, tailgate, side body panels, door inners and outers, seat trim components, chassis frame, brake pedals, knuckles and selected plastic parts.

Pitso explained that IMSAf localises as much as possible where it makes business sense.

“Localisation enables us to leverage local manufacturing capability, reduce import duties and logistics costs, while simultaneously strengthening South Africa’s automotive and manufacturing supply chain and industrial capability,” he said.

The new-generation locally-built D-Max represents localisation growth in several areas, including styling changes introduced with the facelifted model, chassis components, and large stamping skin panels.

Pitso highlighted that the new bakkie demonstrates how supplier development and localisation work together to support business competitiveness and broader economic development.

“The new ISUZU D-MAX represents a significant step forward in localisation while remaining aligned to ISUZU’s global manufacturing standards and maintaining the trusted reliability that customers expect,” he said.

“This programme has been supported through investments from both IMSAf and local suppliers in tooling, capability upgrades and production readiness.”

Moving forward, Isuzu is committed to furthering supplier development, SME growth, localisation expansion, and strengthening the competitiveness of South Africa’s automotive manufacturing sector.

“We will continue to play a meaningful role in strengthening South Africa’s automotive manufacturing ecosystem,” concluded Pitso.

“By supporting supplier development and growing local manufacturing capability, we are contributing to the long-term competitiveness and sustainability of the industry.”

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