Gqeberha – Japanese automaker Isuzu Motors is gearing up to make South Africa the main manufacturing hub for its commercial trucks on the continent, a move aimed at boosting export volumes and growing local sourcing of parts.
Billy Tom, President and CEO of Isuzu Motors South Africa, said he has been in ongoing discussions with the company’s headquarters in Japan to shift more truck production to Gqeberha.
“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 told Reuters.
Isuzu has already run successful trials of building trucks and bodies locally, though some bodies are still imported from China and the Middle East. The company’s South African plant currently manufactures the Isuzu D-MAX bakkie, assembles medium and extra-heavy trucks, and imports the MU-X SUV for distribution across Africa.
While truck exports remain limited, Isuzu already ships bakkies to more than 30 African countries. Tom said the company is now targeting West Africa as a starting point to grow its truck exports, with an ambitious goal of raising its African production share from 22% today to 45%.
The move comes at a time when South Africa’s auto industry faces rising pressure from cheap imports, particularly from China. Some 64% of vehicles sold in the country are imported, raising fears of deindustrialisation. Trade Minister Parks Tau recently warned that the sector has already seen 12 company closures and more than 4,000 job losses over the past two years.
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The South African Automotive Masterplan 2035 has set a target of 60% local content and up to 1.5 million vehicles produced annually by 2035. However, progress has stalled, with local content stuck at 39% and annual production hovering around 600,000 units.
Despite the challenges, Tom believes Isuzu can leverage the African Continental Free Trade Area to scale up production and expand exports. “We’ve been looking for opportunities in the African business. 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%,” he said.
If successful, South Africa could cement its role as the truck-building powerhouse for the continent.
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