Isuzu Motors SA invests 580 million rubles in support of component localization

L.sequestration is a process in which an increased percentage of parts and costs of vehicles are assembled or manufactured in South Africa rather than imported. This process represents a significant opportunity to transform the automotive sector and bring into it the supply chain of participants in the broad economic empowerment of blacks (B-BBEE). For the second year in a row, Isuzu maintains the leading B-BBEE Level 1 level in the automotive industry.

In line with the set goal of the South African Automotive Master Plan (SAAM) and the drive to provide 60% local value added by 2035, Isuzu has singled out localization as a key strategic imperative for business. Billy Tom, President and CEO of Isuzu Motors South Africa, said: “Localization is important for the transformation of the automotive sector. Under SAAM 2035, the automotive industry will grow from 600,000 to 1.4 million vehicles per year. This gives us a huge opportunity to support black car suppliers in setting up their business in the industry. It will help stimulate transformation and create jobs. ”

“By securing the intellectual property rights to the goods in question, we are working with our local supply partners to develop the necessary opportunities for the sustainable production of these goods in South Africa,” said Comane Pitso, senior vice president of commercial operations at Isuzu Motors South Africa.

As a result of the R580m investment, vendors now have the necessary machinery and equipment needed to produce the components needed by Isuzu. Through this process, Isuzu has been able to collaborate with 107 local component manufacturers, supporting local value-added content and creating at least 235 new jobs from local component manufacturers.

“One such example of our localization strategy is the partnership between Isuzu Motors South Africa and a 73 per cent black-owned Acoustics supplier based in Gkeberg. They got contracts to assemble the sound and carpets specifically for the new D-Max bakkie. Acoustics, which is responsible for producing smaller liners for rubble, helped Isuzu achieve its first industry through the installation of local vinyl mats.

“We have to do things differently if we want to rely on local content, and Acoustics is an example of using local content and opportunities. Over the last few decades, design opportunities have become more multinational, so we need to be involved at the local level, ”Pico said.

“Great strides have been made in the alliance between the car industry and the government, and the country’s progressive car policy demonstrates the power of pro-government cooperation with the industry. But this is not enough. The automotive industry continues to face difficult challenges in accelerating localization and developing supply chains for the future, and without localization the automotive industry will fight for competitiveness. ” Concluded Pico.