Toyota SA CEO calls for end to dumping of second-hand vehicles in Africa

Toyota South Africa CEO, Andrew Kirby, has announced that the company will be manufacturing and selling the brand-new Corolla Cross in South Africa in the fourth quarter of 2021. This decision follows the company's 2019 investment of 2.4 billion rand in the production of new passenger vehicles in South Africa. The move is seen as a strategic investment in the growing SUV market in South Africa and Africa. The new model will include a hybrid drivetrain and will be built in both left and right-hand drive versions for the local market as well as exports to the rest of Africa. The investment is expected to create 500 additional jobs at the factory and at least a thousand more in the supply chain, while also bringing in around 2.85 billion rand in additional local purchases. This announcement is part of Toyota's long-term commitment to the economy of South Africa and the continent, as it prepares for the growth of the automotive industry in Africa. The decision is also supported by the South African government's Automotive Masterplan and the Automotive Production and Development Programme (APDP), offering policy certainty and support for the industry. While the African Continental Free Trade Area (AfCFTA) offers potential for growth, Toyota identifies challenges such as duty regulations, tariff schedules, rule of origin, non-tariff barriers, and the issue of importing used vehicles, which hinder the industrialization of the automotive sector in Africa. CEO Andrew Kirby calls for measures to prevent Africa from becoming a dumping ground for used vehicles, emphasizing that this practice hampers new car sales, localization, and job creation. He highlights the importance of addressing this issue to stimulate the growth of the automotive industry and create employment opportunities in the region.