TOYOTA WARNS SA
Andrew Kirby, CEO of Toyota South Africa, highlighted the urgent need for government intervention as the country faces de-industrialisation, a trend marked by increased vehicle imports and declining local production. Speaking at a seminar by the National Association of Automotive Component and Allied Manufacturers, he emphasised that South Africa’s automotive sector has significantly lagged behind Thailand, which now produces three times more vehicles and employs over 400 000 people, thanks to effective government policies.
Kriengkrai Techakanont from Thammasat University detailed how Thailand’s flexible yet consistent policies have fostered growth, particularly in the transition to neighbourhood electric vehicles (NEVs) through tax incentives and consumer subsidies. Kirby suggested South Africa could benefit from similar strategies to enhance local production and component localisation.
He pointed out that South African vehicles are 6% to 12% more expensive than comparable Thai models, indicating that targeted tax policies could stimulate domestic demand. Professor Justin Barnes from the Toyota Wessels Institute of Manufacturing Studies echoed Kirby’s call for collaborative policy development involving both public and private sectors, emphasising that successful policy implementation is key to revitalising the industry.
