Toyota’s R10.4 billion investment in its KwaZulu-Natal manufacturing plant is a confidence booster

A recent press release by Toyota South Africa Motors (TSAM) confirms the automaker’s R10.4 billion investment at their Prospecton manufacturing plant outside Durban in KwaZulu-Natal. This investment follows the brand’s launch of the 9th generation Toyota Hilux, which will be built at this plant.

This investment is crucial for Toyota. Not only does this mark Toyota’s largest investment in the South African market by far but also highlights the brand’s commitment to this market. For years, Toyota has been a national leader in automotive sales. The Toyota Hilux has recently been reported as the country’s best-selling bakkie and also the best-selling car for June 2026. The South African built Hilux is exported to 74 different countries across Europe and Africa.

According to Toyota: “The investment reinforces Toyota’s long-term commitment to South Africa as a globally competitive automotive manufacturing hub. Additionally, it bolsters the country’s position within Toyota’s international production network.” Since the opening of the Prospecton Plant in Durban, the plant has manufactured over 2.9 million Hilux’s alone. The Hilux has also shown to provide extensive job creation, with 4 300 direct Hilux employees at the Prospecton plant. Essentially, the Toyota Hilux does not just represent Toyota, it represents South Africa as a global automotive manufacturer.

“The ninth-generation Hilux is not simply the next Hilux. It is the next chapter in South African manufacturing. Every new generation presents an opportunity to elevate our technology, strengthen our supplier base, deepen localisation, develop our people and improve the competitiveness of our operations. The R10.4 billion investment reflects Toyota’s enduring confidence in South Africa, its people and its manufacturing future,” said TSAM CEO Andrew Kirby.

“When Toyota invests, the impact extends far beyond the vehicles we build. It boosts local suppliers, creates employment, develops skills and contributes to the growth of an entire industrial ecosystem. Every Hilux that leaves our production line carries the contribution and pride of thousands of South Africans.”

Where is the R10.4 billion going to be spent
This R10.4 billion investment by TSAM is expected to be utilised in three areas of the Prospecton plant. These include a new 29 300m² Toyota logistics centre, a state-of-the-art chassis frame coating facility and a new chassis frame welding facility, scheduled for completion in June 2027.

R3.2 billion of the investment has been directed to the local supplier development, as well as supporting localisation objectives. Toyota will also invest a further R7.2 billion into the 9th generation Hilux alone, which will be utilised for manufacturing equipment and supplier tooling. Toyota’s supplier partners have also invested an additional R2 billion in their own facilities, tooling and capability development.