Keypoints:
- Isuzu plans to move truck manufacturing from Japan to South Africa
- West Africa targeted first; pickups already reach 30+ African countries
- Africa’s share of output rose to 23 percent, aiming for 45 percent
ISUZU Motors South Africa is pushing to transform its local plant into the primary manufacturing base for commercial trucks across the continent. President and CEO Billy Tom outlined the plan in an interview with Reuters on Friday.
Moving production from Japan to Africa
Tom said he has been engaging with Isuzu’s headquarters in Japan to redirect production. ‘We’re saying to them, instead of producing vehicles in Japan, you’ve got a facility in Africa. We can produce the vehicles here,’ he explained, underscoring a strategic shift.
The company has already run successful trials assembling a truck and its body locally, though some truck bodies still come from China and the Middle East.
Current operations and first expansion
Isuzu’s South African facility produces Isuzu D-MAX pickups, assembles medium-heavy and extra-heavy trucks, and imports the MU-X SUV for distribution within Africa.
While commercial-truck exports within Africa remain modest, pickups already reach more than 30 African countries. Tom said the expansion will start in West Africa, with plans to scale further from there.
Targeting bigger African market share
Africa’s share of Isuzu South Africa’s production has risen from about 15 percent six years ago to 22–23 percent today. The goal is to reach 45 percent.
Tom sees the African Continental Free Trade Area (AfCFTA) — ratified by 49 countries since its 2021 launch — as a key opportunity. Although fewer than half of members currently trade under zero-tariff rules, the framework could drive growth.
Competitive pressures in South Africa’s auto industry
The plan comes amid rising Chinese vehicle imports, which threaten domestic production. Other major carmakers in South Africa — including Volkswagen, Toyota, and Mercedes-Benz — are also assessing ways to secure volumes.
Trade Minister Parks Tau recently told an auto-parts conference that local-content levels have stagnated at 39 percent, far from the 60 percent target set for 2035. The country’s automotive masterplan also seeks annual production of 1.3–1.5 million vehicles by 2035, compared with the current 600,000 units.
Tom warned that the risk of deindustrialisation is growing, with imports already making up 64 percent of vehicles sold in South Africa. The government is probing their impact on local output through its trade administration body.
