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| The new Hilux Xtra Cabs are already proving
popular in Africa as both the 2,4 and 2,8 turbo diesel engines can burn the sludge sold as fuel. |
Since Toyota launched the new Hilux in February, sales have
been brisk, with all dealers now having waiting lists and staff at Toyota’s
plant in Prospecton working shifts to deliver the orders.
But merely brisk sales are not what Toyota wants. Anything
less than total domination of the market will signify a watershed in South
Africa’s bakkie market that may yet dethrone the Hilux as South Africa’s best-selling
vehicle. Among the competitors, the Ford Ranger from Silverton has shot up from
only 9% at launch to close to a quarter (21%) of reported bakkies sales in
South Africa, while informal road counts show sales of the affordable Mahindra
bakkies also increase with each weakening of the exchange rate.
The man responsible for product planning and marketing
strategy for bakkies at Toyota South Africa
Motors (TSAM), Aidan Castille, is not worried. His strategy is simple: keep running costs low , resale values up and dealers happy. These are the numbers that draws fleet buyers – who have already ordered thousands of the single cab Hilux workhorses – and dads, who want double cabs.
Motors (TSAM), Aidan Castille, is not worried. His strategy is simple: keep running costs low , resale values up and dealers happy. These are the numbers that draws fleet buyers – who have already ordered thousands of the single cab Hilux workhorses – and dads, who want double cabs.
Andrew Kirby, executive vice president and chief operating
officer at Toyota South Africa Motors, told aBr the company has made its
biggest investment yet at the Prospecton plant to ensure supply can meet demand
from Mooinooi to Moscow. Among the 19 Toyota manufacturing plants around the
world, only Thailand can now make more Hilux models than South Africa.
At the glittering gala dinner after the Hilux media launch,
the master of ceremonies introduced Toyota’s local boss, Dr Johan van Zyl as
“South Africa’s other president with the initials JZ”, but Van Zyl’s off-the-cuff
remarks were markedly different from the Marxist rhetoric the ANC leader Jacob
Zuma habitually spouts.
Unlike the other JZ, who
prefers to import rather than spend
local, Van Zyl said it is critical for Toyota to continue pushing for local
content to boost South Africa’s economic growth. Van Zyl said Toyota will more
than double the parts sourced in South Africa to built the Hilux, all as part
of the massive investment Toyota is making at Prospecton, details of which will
be announced in May.
Van Zyl stressed that Toyota Motors South Africa remains
bullish on the region’s future. He said the company has learned to plan around
the local currency’s volatility, which he blamed on in the Rand being linked to
what he termed “overnight money” flowing in and out of the Johannesburg Stock Exchange.
“We still see a South African with huge potential, and people with the drive to
make things happen,” Van Zyl said.
The bottom line in bakkie sales, Van Zyl added, was the back-up
supplied by over 200 Toyota dealers across southern Africa. “No other
manufacturer comes close,” he said.
From the workshop, Amirchand Rugunanan, a PDI technician at
McCarthy Toyota in Pietermaritzburg said he is most impressed by the ability of
the new drivetrains to idle even a loaded Hilux up inclines. “The legend
continues.” Rugunanan agreed, softly closing the bonnet.
(Published in aBr, April 2016)
