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Opportunity Issue 111

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Opportunity magazine is a niche business-to-business publication that explores various investment opportunities within Southern Africa’s economic sectors. The publication is endorsed by the South African Chamber of Commerce and Industry (SACCI).

AUTOMOTIVE Other parts

AUTOMOTIVE Other parts of Gauteng also host production facilities for vehicles. UD Trucks, a part of the Volvo group, assembles the Croner heavy commercial vehicle at Rosslyn. Gauteng is also home to a strong automotive components industry, together with several bus and truck assembly plants. These include Scania, TFM Industries and MAN Truck and Bus South Africa, as well as the Chinese truck manufacturer FAW, which owns an assembly plant in Isando. Beijing Automotive Works (BAW) assembles taxis at Springs. Armoured cars are produced by the Paramount Group. DCD Protected Mobility manufactures armoured cars in Boksburg, which are branded as Vehicle Mounted Mine Detectors. In nearby Benoni, BAE Systems OMC designs and manufactures protected vehicles. Modern trends and investments Ford has initiated discussions about the feasibility of developing a sophisticated rail corridor between Gauteng and the Eastern Cape to link up the company’s two plants: Ford wants to send parts to Pretoria and export cars through the Port of Gqeberha. BMW’s Plant Rosslyn in Tshwane has produced more than 1.6-million vehicles and exported them to more than 40 countries worldwide, including 14 African nations. To produce the BMW X3 plug-in hybrid for export, BMW will invest R4.2-billion in adapting the factory to electrical specifications. More than 300 employees will receive specialised training at the plant, which was BMW’s first-ever foreign facility. BMW has also spent R260-million on an expanded campus at Midrand. All of Gauteng’s large automobile manufacturers are investing in new model production. Nissan is spending R3-billion on production of the Navara pick-up vehicle. Mercedes-Benz South Africa’s new C-Class project (W206) has sparked several other related investments, which collectively will create 2 078 new jobs over two years at the East London plant. The production of the C-Class vehicle is a technological marvel and the plant regularly wins international awards for quality. The installation of a new sequencing centre, installed by Automotive Assembling Ford engines in Gqeberha. Automotive exports Item 2022 2023 Value of vehicles and components R227.3-billion R270.8-billion Vehicles exported 351 785 units 399 594 units APDP2 trade 16.5% of GDP 16.7% of GDP (R520.5-billion) Countries exported to 152 148 Source: Automotive Business Council Logistics Solutions (an AHI company), has made the assembly line even more efficient. Toyota South Africa reported in September 2023 that it had achieved national market share in vehicle sales of 27.6%, led by the number one brands in passenger cars and light-commercial vehicles, the Corolla Cross and Hilux. More than 50% of the 3 249 Hiluxes sold were the double-cab models and 2 259 Corolla Cross vehicles were sold. In addition to the 1.8-million automotive part pieces sent out locally, the company shipped 272 290 pieces to foreign markets. In total, the company sold 142 612 in 2023, the highest level achieved for sales since 2007. The company’s total investment of R4.2-billion between 2019 and 2021 included other manufacturing projects and a huge increase in warehousing capabilities. Among the challenges Toyota had to overcome was a major flood. In 2025 Bell Equipment will start manufacturing the Bell Motor Grader in Richards Bay. A European technology partner and Bell engineers are working on developing a fully battery-operated version of the popular Bell Articulated Dump Truck (ADT). KwaZulu-Natal has a substantial automotive components sector which includes large manufacturers such as GUD Filters. In line with the policy of developing Industrial Economic Hubs, the Durban Automotive Supplier Park is planned at Illovo, south of Durban and near to the Toyota manufacturing plant. The Dube TradePort Corporation will manage the project, which covers 1 013ha. Other partners are the eThekwini Municipality, Toyota and the provincial government but the floods which hit the province in 2022 have slowed progress on the project. Another manufacturer of earthmoving equipment is at Port Shepstone on the South Coast. Dezzi is part of the Desmond Group of companies that was founded in 1973 and now has 18 offices and branches. The Dezzi CMI backhoe loader is a popular part of the company’s range. Home-grown manufacturer of powertrain and catalytic converter assembly systems, Jendamark, exports to 18 countries from its facility in Gqeberha. Continental Tyre South Africa is producing a 19-inch tyre for the first time at its New Brighton facility in Port Elizabeth. PHOTO: Ford Motor Company

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