Toyota South Africa Motors has completed more than 77% of a R10.4 billion, or approximately $634 million, investment programme supporting production of the next-generation Hilux pickup truck at its Prospecton manufacturing plant in Durban.
The company has started pilot production of the vehicle, marking a major step towards full-scale manufacturing. Most of the programme has been implemented, although construction of a new chassis-frame welding facility is expected to continue until June 2027.
The investment strengthens South Africa’s position as a major Toyota production and export base while introducing upgraded manufacturing equipment, advanced robotics and new logistics infrastructure.
Key Overview
- Toyota has completed more than 77% of its R10.4 billion investment programme.
- Pilot production of the next-generation Hilux has begun at the Prospecton plant in Durban.
- Approximately R3.2 billion is funding factory and logistics infrastructure.
- A further R7.2 billion is supporting vehicle production equipment, robotics and supplier tooling.
- Toyota expects annual Hilux output to reach approximately 140,000 vehicles.
- The remaining chassis-frame welding facility is scheduled for completion by June 2027.
- Vehicles produced in South Africa will serve domestic customers and export markets in Africa and Europe.
Pilot Hilux Production Begins in Durban
Toyota has begun pilot production of the new Hilux at its Durban plant as it moves closer to completing one of the largest recent automotive manufacturing investments in South Africa.
Pilot production allows the company to test assembly processes, equipment and quality-control systems before moving to full-scale output. Once the programme is fully operational, the plant is expected to manufacture about 140,000 Hilux units annually for South Africa and export destinations across Africa and Europe.
Toyota South Africa Motors Chief Executive Andrew Kirby said the investment demonstrated the parent company’s confidence in the country despite major changes affecting the international automotive sector.
The Hilux remains an important product for Toyota’s South African operations. Local production also connects the company to a broad domestic network of component manufacturers, logistics providers and other industrial suppliers.
Investment Modernises Toyota’s Production Facilities
Toyota has divided the R10.4 billion programme between infrastructure improvements and preparations for manufacturing the new vehicle.
Approximately R3.2 billion has been allocated to factory upgrades, including a logistics centre for imported components and a new chassis-treatment and coating facility. These investments are intended to improve material handling, production efficiency and the durability of locally manufactured vehicles.
The remaining R7.2 billion supports preparations for next-generation Hilux production. This includes manufacturing equipment, advanced robotics and tooling required by Toyota and participating suppliers.
A new chassis-frame welding facility is also under construction. The project will introduce upgraded welding technology and is expected to be completed by June 2027, making it one of the final major components of the investment programme.
The South African government said Toyota’s R10.4 billion commitment would strengthen manufacturing capacity, improve export competitiveness and support economic activity in the automotive supply chain.
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South Africa Retains a Major Automotive Export Role
Toyota’s investment comes as South Africa seeks to protect and expand its position in global vehicle manufacturing. The country exported a record 414,268 vehicles in 2025, representing a 5.9% increase from the previous year.
The value of vehicle exports also reached a record R229.8 billion in 2025, according to the industry’s 2026 automotive trade assessment. Light vehicles remained the dominant export category, reinforcing the importance of locally manufactured pickups, sport utility vehicles and passenger cars.
Toyota’s Durban investment will increase South Africa’s ability to supply major international markets. However, local manufacturers must continue adjusting to changing emissions regulations, new technology requirements and pressure from lower-cost vehicle imports.
Chinese Brands Increase Competitive Pressure
The next-generation Hilux enters production as Chinese vehicle manufacturers expand rapidly in South Africa. The number of Chinese brands operating in the country rose from eight in 2024 to 15 in 2025, while their passenger-vehicle market share increased from 11.2% to 16.8%.
Brands including Chery, GWM and BYD have attracted buyers with competitive pricing, modern technology and extended warranties. Despite this growth, Toyota maintained its position as South Africa’s overall vehicle-market leader with a 24.8% share.
The new Hilux includes enhanced safety systems and upgraded driver-assistance technology. These improvements are increasingly important as customers compare established vehicles with newer competitors offering extensive technology packages at lower prices.
Toyota’s continued local investment gives the manufacturer an additional advantage by supporting domestic production capacity, shortening parts of its supply chain and maintaining a large network of dealers and suppliers.
Hilux Programme Supports Long-Term Industrial Capacity
The significance of the investment extends beyond production of a single vehicle. New robotics, welding systems, supplier tooling and logistics infrastructure can improve the plant’s long-term productivity while strengthening technical capabilities within South Africa’s automotive sector.
The programme should also support activity among local component suppliers and service providers linked to Toyota’s manufacturing operations. However, the exact number of additional jobs attributable to the investment has not been publicly specified.
With pilot production underway and most of the R10.4 billion programme complete, Toyota is positioning the Prospecton plant for another major production cycle. Successful delivery of the new Hilux will help determine how effectively South Africa maintains its role in Toyota’s global manufacturing and export network.
Sources
Reuters / The Presidency of South Africa / naamsa
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