President Ramaphosa Welcomes Toyota's R10.4bn Hilux Investment

Speaking virtually during the official line-off ceremony at Toyota's Prospecton plant in eThekwini, the President said the occasion represented far more than the launch of a new vehicle.

President Cyril Ramaphosa has welcomed Toyota South Africa Motors' R10.4 billion investment in the production of the ninth-generation Hilux, describing it as a strong endorsement of South Africa's economy and its manufacturing potential.

Speaking virtually during the official line-off ceremony at Toyota's Prospecton plant in eThekwini, the President said the occasion represented far more than the launch of a new vehicle. He said it reflected confidence in South Africa's workforce, industrial capabilities and long-term investment prospects.

Ramaphosa noted that the Hilux has become part of South Africa's industrial history over the past five decades. Although it carries one of the world's most recognised automotive brands, he said it has earned its place as a proudly South African product because it is designed for local conditions, built by South African workers and exported to international markets. The launch also coincides with National Science Month, highlighting the increasing role of science, technology and innovation in modern vehicle manufacturing.

Local suppliers and workers expected to benefit

The President said the value of Toyota's investment extends well beyond new production facilities, pointing to the opportunities it creates for employees, suppliers and young people entering the labour market. He explained that around one-third of the R10.4 billion investment has been directed towards strengthening local supplier capacity and tooling, while supplier companies have invested an additional R2 billion to expand localisation.

According to Ramaphosa, these investments help build stronger industrial ecosystems, deepen domestic manufacturing capabilities and create opportunities for small and medium-sized businesses to grow. He described the project as an example of inclusive industrial development that generates lasting economic benefits through local production and supply chains.

The President also said the investment demonstrates South Africa's ability to convert investment commitments into tangible economic outcomes, reinforcing confidence among both local and international investors.

Automotive sector remains key to future growth

Ramaphosa said the automotive industry continues to play a vital role in the country's economy, contributing about 5% of South Africa's gross domestic product, supporting more than 115,000 direct manufacturing jobs and over 500,000 jobs across the wider value chain.

He reaffirmed government's commitment to keeping the sector globally competitive as the industry shifts towards cleaner mobility and advanced vehicle technologies. This includes strengthening incentives for component manufacturing, supporting battery value chains, encouraging research and innovation, developing specialised skills and providing policy certainty that promotes investment and localisation.

The President also highlighted South Africa's rich reserves of critical minerals as an important advantage in the global transition to future mobility. By combining these resources with advanced manufacturing, local beneficiation and technological innovation, he said the country can establish itself as a leading international hub for next-generation automotive production.

Ramaphosa welcomed recent improvements in freight rail and port operations, noting that Transnet's vehicle terminals in Durban, Gqeberha and East London handled more than 792,000 fully built vehicles during the ten months to February, the highest productivity levels recorded in recent years. He said continued collaboration between government and the private sector will strengthen South Africa's position as a globally competitive export platform.

Closing his address, the President praised the workers at Toyota's Prospecton plant, saying every Hilux produced reflects their skill, dedication and craftsmanship while sending a clear message that South Africa is open for business and capable of competing with the best in the world.