Toyota South Africa is set to construct its Complete Knock Down (CKD) plant in South Africa. This move by the company has been greatly welcomed by the Minister of Trade and Industry in the country, Rob Davies.
According to the minister, the Government of South Africa supported the move by Toyota South Africa Motor Company to construct the US $39.04m plant in the region. This move will support the Governments Industrial Policy Action Plan (IPAP) 2015.
Minister Davies noted during the launch of the project that this was effective since it was taking place at a time when the automotive sector industrial policy instruments have supported an investment of up to US $2.01bn since the launch of the Automotive Production and Development Programme (APDP) IN 2013.
Minister Davies noted that the Industrial Policy aimed at supporting the automotive industry increasing value while at the same time improving on competitiveness in the domestic industry.
The Minibus Industry in South Africa was previously characterized by Complete Built Units (CBU) imports until when the Semi Knock Down (SKD) programme was formed in 2011.
SKB was a temporary policy to facilitate re-establishment of the minibus vehicle in South Africa. This helped in plans for the migration to CKD full operation.
