The South African division of Japanese automaker Isuzu Motors plans to make the country its manufacturing base for commercial trucks across Africa, aiming to boost production volumes and increase the use of locally sourced parts.
Billy Tom, President and CEO of Isuzu Motors South Africa, told Reuters he has been discussing the proposal with the company’s headquarters in Japan.
“We’re saying to them, instead of producing vehicles in Japan, you’ve got a facility in Africa. We can produce the vehicles here,” Tom said.
Isuzu has already carried out successful trials of manufacturing a truck and its body locally, although some truck bodies are still imported from countries such as China and those in the Middle East.
The South African plant produces Isuzu D-MAX pickup trucks, assembles medium-heavy and extra-heavy commercial trucks, and imports the Isuzu MU-X SUV for distribution to African markets, according to Reuters.
While truck exports to the rest of Africa remain limited, the company exports its pickups to more than 30 African countries.
“So we’ve targeted West Africa as a starting point and then we’ll see how it goes,” Tom said.
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He added that the African market has been growing steadily for the company.
“About six years ago 15% of my volumes were in Africa. That number is now 22% to 23%. Our ambition is to get that number to 45%.”
Tom hopes to take advantage of the African Continental Free Trade Area, launched in 2021 and ratified by 49 countries, although fewer than half are actively trading under its zero-tariff framework.
Major automakers in South Africa, including Volkswagen, Toyota, and Mercedes-Benz, are also seeking ways to protect production volumes as rising imports, especially from China, threaten the local industry.
South Africa’s automotive masterplan sets a target of 60% local content by 2035, but the figure has been stuck at 39%, according to Minister Parks Tau, who spoke at an auto parts conference earlier this week.
The plan also aims to raise annual vehicle production from the current average of 600,000 units to between 1.3 million and 1.5 million by 2035.
“That threat of deindustrialization is there and probably getting bigger as well, because if you look at the growth of what is imported into the country, that number is growing,” Tom said.
Currently, about 64% of vehicles sold in South Africa are imports.
Tau said the government’s international trade administration body will investigate the impact of automotive imports on local production.
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Image Credit: Harvest SA Magazine
