KZN to receive R500m automotive investment

Minister of Trade and Industry, Ebrahim Patel and Toyota South Motors CEO, Andrew Kirby

October 6 saw the launch by the department of trade and industry (dti) of a taxi manufacturing expansion plant – representing an investment of nearly R500m – in KwaZulu-Natal.

It was part of the government’s automotive master plan, said Minister of Trade and Industry, Ebrahim Patel, at the launch.

“Last year, government and stakeholders adopted an automotive master plan, aiming to achieve 1% of global vehicle production by 2035 (an increase from the current 600 000 units to almost 1.4 million units a year) and increase Iocal content from the current 39% to 60%. The master plan is aiming to double employment in the value chain from current levels to about 240 000 and also to achieve at least level 4 BEE status from 2021,” said Patel.

The expansion forms part of the Toyota South Africa Motors (TSAM) Hiace Ses’filikile plant, and the Minister views this partnership as an ideal platform for market growth, particularly in the local sector. 

“Since TSAM’s localisation programme began, more than 80 000 taxis have been assembled locally by Toyota and another smaller assembler. The increased level of local content is an important part of the vision for the industry and will increase the participation of more South Africans in this thriving sector of the economy," he said.


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