Isuzu Mulls Upgrade of Manufacturing Capacity in South Africa to Meet Growing Demand in Africa

In an interview with Reuter, the President and CEO of Isuzu Motors in South Africa revealed that he is in talks with the HQ in Japan to localize the production of more vehicles. Along with Morocco, South Africa is one of the major vehicle production bases in Africa. Volvo, Volkswagen, Toyota, Tata, Nissan, Mercedes-Benz, MAN, Mahindra, Isuzu, Hyundai, Ford, and BMW all have production facilities in South Africa, with other automakers such as Stellantis and BAIC prospecting the market.

Already, Isuzu South Africa in Gqeberha has conducted some trials by assembling trucks successfully locally. The truck bodies and some parts still have to be imported from countries such as China or UAE.

Currently, the South African plant produces Isuzu D-MAX pickup trucks and assembles medium-heavy and extra-heavy trucks. In addition, it imports Isuzu MU-X SUV for distribution across Africa. Currently, the best seller is the pickup trucks which is sold and exported to more than 30 countries across Africa.

“We’ve been looking for opportunities in the African business. About six years 15 percent of my volumes were in Africa. That number is now 22 to 23 percent. Our ambition is to get that number to 45 percent.”

Isuzu South Africa CEO Billy Tom

South Africa plans to introduce a 60% local content rule by 2035 to promote and protect local production. Current, the local content rule is at 39%. By leveraging the #AfCFTA, local production can get a boost. By 2035, South Africa plans to output 1.5 million vehicles per year. Still, two-thirds of vehicles sold in South Africa are still imported and there is thus room for improvement.

With the holding of #TICAD2025, Billy Tom hopes that his plan will receive the blessing of the Japanese authorities. The expansion of the African market is looking more and more attractive given the robust growth on the continent and tariff barriers elsewhere.