Dube TradePort has seen a hive of activities this week as major automotive companies pledged their investment and have set up shop in KwaZulu-Natal’s TradeZone.
Mahindra South Africa and Auto Investment Holdings Group (AIH Group) celebrated 20 years since its establishment in the country, while also revealing the start to the next phase of their journey by producing in a new assembly facility.
At the celebrations, a special Pik Up S6 4x4 shared the stage with dignitaries. This was the 20 000th model to be produced in the South African plant.
Mahindra first started producing single cab Pik Up models at the plant before increasing the plant’s capabilities and the complexity of its semi-knocked down (SKD) line to reach a point where each Pik Up is a complete nuts and bolts assembly.
Over time, Mahindra South Africa added its double cab and special edition models, such as the very popular Karoo Editions to the line-up and today all Pik Up models are assembled here.
“The Mahindra Assembly Facility could rightfully be described as the largest and most complex of its kind on the African continent if one considers single-brand facilities that produce a consistent flow of vehicles every month,” said Rajesh Gupta, CEO of Mahindra South Africa.
Corrie Kotze, CEO of AIH, said the new facility would cover 14,000 m2 and will redouble Mahindra’s investment in the country. Construction of the new assembly is expected to be completed by June 2025.
Kotze said the company would expand its staff to complement the growing production volumes, as they currently have 90 staff on the assembly line.
Then on Thursday Ogihara South Africa (OSA) a new joint venture between Toyota Tsusho Africa (TTAF), a subsidiary of Toyota Tsusho Corporation, in collaboration with Ogihara (Thailand) Corporation (OTC) and Toyota South Africa Motors (TSAM), pledged a R1.2 billion investment. The companies are building a facility at the Dube TradePort to manufacture parts for their current and future models.
Talking about all the investments the Dube TradePort CEO Hamish Erskine said these investments showed their long-term involvement in the automotive industry.
He said there had been electronic, high-value manufacturing, food processing, and fibre optics sectors at the Dube Trade Port. He said they started getting involved in this industry when Mahindra SA came on board.
“The Automotive sector came with AIH Group and Mahindra and at that same time, we had been given the task of working with Toyota on supply parts. In the last year we are seeing our involvement accelerating,” he said.
Erskine said they are seeing the growth of AIH and Mahindra and are expecting it to grow even more. He said Toyota has also brought a couple of other suppliers. “We are finding spaces for them already,” he added.
Moreover, he said with these investments he hopes that other automotive brands will come on board.
The CEO of Toyota SA Andrew Kirby said this was their largest localisation initiative to date. “This collaboration has focused on localising the production of press parts for our Hilux and Fortuner models at the Toyota plant in Prospecton, Durban. By investing in this facility, we are localising approximately 25,000 tons of metal pressing materials, which were previously imported, through our partnership with ArcelorMittal South Africa,” explained Kirby.
He said the investment will create 250 permanent jobs and many more in the local Durban-based businesses that offer supply chain, transport, and adjacent services to the new joint venture.
Kirby said the establishment of this global body press supplier in the country will elevate skill levels within the Durban region and contribute to the overall industrialization and sustainability of the local automotive sector.
The Minister of the Department of Trade, Industry and Competition Tau Parks said the investment was welcomed as it falls in line with the strategic priorities of the 7th administration led by President Cyril Ramaphosa to drive faster implementation of industrialization, job creation, and transformation.
Parks said they have announced the White Paper on New Energy Vehicles (NEV) and are working on developing programs that drive industrialization in this sector as investments are increasing.