aBr Automotive Business Review July/August 2026 | Page 13

More local content

Toyota has invested R3,4 billion in supplier tooling, and the new Hilux engages 107 suppliers across South Africa ' s industrial ecosystem. Toyota has added four new suppliers for the ninth-generation Hilux and created 1040 new jobs across its supplier community.
For South African automakers and suppliers, localisation is a real issue. The government has mandated a significant increase in localisation, from the current industry requirement of 39 % to nearly 60 % by 2035. For luxury crossover SUV and sedan models, that ' s a challenge.
Product planners, engineers and buyers at Toyota South Africa have increased the true localisation content of the new Hilux by 3 %. That ' s a worthy achievement because the new Hilux has more digitisation and sensors than before, and those electronic components are difficult to localise.
Sensors and digital components are increasingly accounting for a much greater share of the content value calculation for locally built vehicles. These components might be physically small, but they are complex and expensive, accounting for a large share of the vehicle value.
Increasing local content by 3 % is a testament to Toyota South Africa ' s engineers and buyers ' meticulous attention to detail and dedicated supply chain development. An interesting future localisation for the ninth-generation Hilux will be accessories and factory-fitted upgrades.
The market for 4x4 accessories is enormous, with customers demanding more OEM-fitted options ordered through official dealerships. The likelihood is that Toyota South Africa will want to capture more of that aftermarket accessories business through its dealership network. Sourcing components such as bash plates, bush bars, canopies, loadbin covers, and side-steps from South African specialist suppliers could further enhance the Hilux ' s overall localisation.

Presidential approval

Testament to Hilux ' s status as South Africa ' s most popular vehicle, and Toyota ' s ranking as the country ' s largest car company, President Cyril Ramaphosa sent a personal message for the official off-the-line event of the ninth-generation model.
The President recognised how localised the Hilux is. " The Hilux has become part of the South African story. Although it carries one of the world ' s most respected automotive brands, we proudly regard the Hilux as a South African vehicle because it is designed for our conditions, built by South African hands and exported from South African shores."
With many global automotive assembly zones struggling with the impact of China ' s powerful automotive exports, President Ramaphosa reiterated the value of Toyota South Africa ' s ninth-generation Hilux for the country. " The R10.4 billion investment in the new-generation Hilux programme demonstrates precisely the type of investment that South Africa seeks to attract."
Suppliers in the South African automotive ecosystem were heartened by the strong statement made by the President at the Hilux off-the-line event. " We are strengthening incentives for component manufacturing. We are supporting battery value-chain development. We are promoting research, innovation and skills development in newenergy vehicles. Above all, we are providing policy certainty that encourages investment, localisation and long-term growth."
Toyota has built 2.9 million Hilux bakkies in Prospecton, since production started in the 1970s. Last year, Toyota South Africa built just over 100,000 Hilux bakkies for local and global customers. With an installed production capacity of 140,000 bakkies per year, Toyota South Africa should cross the 3-million-unit mark with Hilux before the end of 2027.
JULY | AUGUST 2026 11 WORDS IN ACTION