By Otsile Kadiege

Toyota Tsusho Africa (TTAF), a subsidiary of Toyota Tsusho Corporation, in collaboration with Ogihara (Thailand) Corporation (OTC) and Toyota South Africa Motors (TSAM), are proud to announce the formation of a new joint venture, Ogihara South Africa (OSA).

The announcement was made at an event that took place at the construction site at Dube Trade port in Durban. The event was attended by Minister Parks Tau of the Department of Trade, Industry and Competition. In his address, he emphasised that, “The Department is focused on implementing and enhancing Masterplans to boost key industries, attract investment, create jobs and drive transformation. Specifically, the automotive masterplan aims to make South Africa’s automotive industry globally competitive and sustainable, benefiting both industry stakeholders and society at large.”

Minister Tau joined senior executives of TSAM, TTAF and OTC to celebrate the partnership which sees an investment injection of over R1.1 billion into the production of essential manufacturing components. The strategic investment in the South African automotive industry is apportioned with TSAM contributing R545 million and the TTAF-Ogihara joint venture investing R630 million.

Speaking at the event, Andrew Kirby, CEO and President of Toyota South Africa Motors, says: “This joint venture marks a significant step towards our Local Value Addition (LVA) improvement strategy, by localising the production of these critical components. The inclusion of Ogihara SA in our local manufacturing ecosystem will not only create new job opportunities but will also enhance our capabilities in producing high-quality body parts for the automotive industry. This collaboration exemplifies our commitment to localisation and underscores the possibilities for growth and development in the KZN province.”

According to Statistics South Africa (Stats SA), the official unemployment rate has risen to 32.9% in the first quarter of 2024, marking an increase of 0.8 percentage points. In response, The South African Automotive Masterplan (SAAM) 2021-2035 aims for South Africa to manufacture 1% of global vehicle production—equivalent to 1.4 million vehicles a year by 2035. This target is set to significantly enhance the country’s position in global vehicle production rankings. Furthermore, the plan seeks to double employment in the automotive sector to 240,000 jobs.

Aligned with these national objectives, TSAM is committed to elevating its local procurement ratio. Leveraging TTAF’s extensive business expertise and operational efficiency in South Africa, this joint venture will support TSAM’s goal by localising the production of automotive stamped parts. “As a committed corporate citizen operating within South Africa, this collaboration not only aims to bring significant foreign direct investment to our country but will also create numerous job opportunities and further deepen localisation within our economy, in line with the objectives outlined by the South African Automotive Masterplan,” adds Kirby.

The new partnership is poised to significantly add to local manufacturing with the production of small to medium stamped parts for TSAM. Production is set to commence in July 2025. This strategic partnership will not only raise TSAM’s local procurement ratio by 2%, translating to an estimated R700 million in annual spend, but will also drive significant job creation, with 250 new jobs expected by 2026. The venture will phase in the sourcing of additional local press parts that are currently imported. This significant step will not only boost local industry capabilities and economic growth but will also lead to an increase of 25,000 tons a year in locally procured steel.