Japanese auto giant aims to make Africa’s richest country the hub of continental truck production

The South African arm of Japanese automaker Isuzu Motors is positioning itself as a manufacturing hub for commercial trucks on the continent, part of a strategy to boost production volumes and deepen the use of locally sourced parts.

Billy Tom, President and CEO of Isuzu Motors South Africa, told Reuters that he has been in discussions with Japan regarding the relocation of more production to Africa.

Isuzu has already run successful trials of locally building truck bodies, though it still imports some from China and the Middle East.

While export volumes for trucks remain small, Isuzu already ships pickups to more than 30 countries in Africa. Tom said the company is targeting West Africa as a starting point for scaling up truck exports.

Isuzu has set an ambitious target to grow its African production volumes to 45%, up from about 15% six years ago and the current 22–23%.

South Africa’s auto industry, home to seven major manufacturers including Volkswagen, Toyota, and Mercedes-Benz (MBGn.DE), faces mounting pressure from surging vehicle imports, particularly from China.

Low domestic sales of locally assembled cars, coupled with sluggish local content levels, have already forced 12 company closures and wiped out more than 4,000 jobs in the past two years, Trade Minister Parks Tau said.

The country produced 515,850 vehicles in 2024, well below the South African Automotive Masterplan 2035 target of 784,509.

Adding to the pressure, South Africa’s vehicle exports to the U.S. have collapsed this year, plunging 73% in the first quarter and falling even further, 80% in April and 85% in May, industry data shows.

The decline follows Washington’s decision in April to impose a 30% tariff on South African cars and parts, a move that has battered the nation’s 28.7 billion rand ($1.64 billion) automotive export market. Some manufacturers have already lost contracts with U.S. buyers, according to Tau.