Isuzu’s R1.2bn investment drive
TARGET: PLANS TO GROW COMPANY’S ANNUAL BAKKIE PRODUCTION TO 29 000 UNITS A YEAR
Operation is the first manufacturing and distribution outside of Japan.
Isuzu Motors of Japan will be investing R1.2 billion in its next-generation bakkie programme in South Africa, with R2.8 billion in additional total local content value generated through the lifecycle of the programme.
Yoichi Masuda, senior executive officer for Isuzu Motors and chair of the Isuzu Motors South Africa board, confirmed the investment on Monday, adding that current plans are to grow the company’s annual bakkie production to 29 000 units a year.
“Our decision to invest in the production of the next-generation bakkie in South Africa demonstrates our commitment to this market,” he said.
“This is reinforced by the fact that this operation is the first bakkie and truck manufacturing and distribution operation outside of Japan which is 100% Isuzu owned.”
Masuda emphasised the important role the government’s Automotive Production and Development Programme (APDP) plays in providing predictability and stability for investors when making long-term business decisions.
“We fully support the requirements of the extended APDP and are working on various initiatives to ensure that we contribute to the achievement of the South African Automotive Master Plan aspirational targets,” he said.
The investment announcement follows Toyota South Africa Motors’ revelation last week that it will be investing R2.43 billion in producing a new passenger car at its Prospecton plant in Durban, from the end of 2021.
Azar Jammine, chief economist at Econometrix, said the investments by Isuzu and Toyota are not massive relative to what the motor industry invests in South Africa’s economy.
“These are kind of add-ons and amount to what one would have expected them to invest if they were to remain as ongoing businesses in South Africa.”
Minister of Trade and Industry Ebrahim Patel, however, welcomed Isuzu’s move, saying it will contribute towards President Cyril Ramaphosa’s investment drive.