Latest announcements by Toyota Africa indicates that the production of its new SUV model, the Corollaries la Cross, in October 2021 would create employment opportunities for thousands of people in South Africa (SA). Corolla Cross would be the company’s first locally-manufactured product based around the Toyota New Global Architecture (TNGA) platform.
In a recent announcement, Andrew Kirby, President and CEO, Toyota, stated that the production and sale of the brand’s latest SUV model in South Africa will commence this year. He further added that “the investment will also generate over 1,500 new jobs, of which 500 will be found” in Toyota’s plant in Prospecton, Durban.
The new set of vehicles is an investment worth about R2.4 billion which is supposed to form part of its new ‘Corolla strategy’ as reported in 2020. As a passenger car, the Corolla Cross would be fashioned especially for its Africa consumers serving both right-handed and left-handed drivers.
South Africa leads the automotive industry in Africa, producing more than 500,000 automobiles of all types yearly. Despite a decline in recent years caused by factors such as power outages, the sector still employs over 112,000 workers from component manufacturing to vehicle assembly, and more than 320,000 people on the value chain. The industry also contributes 6.9 percent to the national Gross Domestic Products (GDP), while manufacturing accounts for 4.4 percent and while retail 2.5 percent.
Other than Toyota, top brands like BMW and Mercedes Benz all have assembly plants in the country. They all contribute to producing thousands of cars for domestic and international markets annually. According to the Japanese automotive manufacturer, a single car has about 30,000 parts if parts are counted to the smallest screw. Considering Toyota produces most of the components needed in car production, this new project would demand an increase in labour in the car manufacturing value chain. Thus creating more jobs for Africa’s most vulnerable COVID-19 economy.
South Africa is rich in natural resources needed for manufacturing in the automotive sector. They include iron ore, platinum, manganese, chromium, copper, uranium, silver, beryllium, and titanium. With about 4 million people dependent on the industry, manufacturing companies leverage low production costs and access to new markets.
