Toyota South Africa Motors

Presentation on theme: "Toyota South Africa Motors"— Presentation transcript:

1 Toyota South Africa Motors
16 October 2017 Bronwyn Kilpatrick VP Finance & Exports Toyota South Africa Motors

2 TSAM EXPORTS PRODUCTS

3 Light Commercial Vehicle Exports
Hilux Single Cab Hilux Double Cab Hilux Xtra Cab

4 SUV & Passenger Vehicle Exports
Fortuner Corolla Quest

5 AFRICA EXPORTS DESTINATION

6 Exports Distribution Countries
Africa Exports 43 African Countries Biggest Markets Ghana Ethiopia Zambia Cameroon Africa Products

7 EXPORTS MARKET SITUATION

8 SUB-SAHARA AFRICA: New Car Market
45% The market decline is due to forex supply restrictions, commodity prices; market stagnation; Government Policy changes; Regulatory changes etc.

9 SUCCESSES AND CHALLENGES

10 Strong Local Based Partners
10 SUCCESSES for Exports into Africa 1. Mobility to Africa (Strong Local Based Partners) Transforming mobility in the continent. Strong Local Based Partners West Africa East & S. Africa Ghana & Gabon

11 SUCCESSES for Exports into Africa
11 SUCCESSES for Exports into Africa 2. Geographical Location Benefit 9 480 Km Km Km Km 5 110 Km Strategic location in the coast allows TSAM to reach markets in Africa quicker compared to competitors. Distance to Central/East Africa is much shorter.

12 SUCCESSES for Exports into Africa
12 SUCCESSES for Exports into Africa 3. Beneficial Free Trade Agreements Five member states are currently participating in the SADC FTA. These member states accounts for 11% of TSAM Exports into Africa. FTA expands trade volume among member countries.

13 CHALLENGES for Exports into Africa
13 CHALLENGES for Exports into Africa 1. Availability of Finance (For New Vehicles) VS + - x / 1 2 3 Affordability Find a car Apply for Finance Banking/Finance for Individual/Private is weak-to-non existent. 4 5 6 Finance Approved Get Insured Get Your Car

14 CHALLENGES for Exports into Africa
14 CHALLENGES for Exports into Africa 2. Regulatory & Industrial Policy Challenges Government Regulatory & Industrial Policy Challenges Customs Tax & Duty System Automotive Industry Regulations Infrastructure Developments (Forex Pressure impacts industrialisation) Weak to unstable policies by many countries. Duties & Taxes can exceed 250% in some countries.

15 CHALLENGES for Exports into Africa
15 CHALLENGES for Exports into Africa 3. Not All SADC members are Participating in the SADC FTA 33% of SADC Countries are participating in the SADC FTA. Results in high cost for motor vehicle in the non-participating countries Although there are FTA with many countries in Southern Africa, however the Industrial Policies do not necessarily offer any protection against importation of second hand vehicles.

16 Second Hand Grey Imports New Vehicle Grey Imports
16 CHALLENGES for Exports into Africa 4. Grey Imports Challenges (New & Used Cars) Second Hand Grey Imports Grey market occupies 30% of Total Sub-Sahara Market. Many countries have no regulation of second hand vehicles (mainly grey vehicles). Import origin - mainly Japan, USA and Middle East. These vehicles are not developed for harsh Africa Continent. New Vehicle Grey Imports

17 CONCLUSION

18 GETTING AFRICA INTO GEAR
18 GETTING AFRICA INTO GEAR Overcome the over-reliance on second-hand vehicle imports Africa vision designed and implemented in partnership with industry stakeholders. Address insufficient vehicle finance options for new vehicles. Encourage SADC member states to participate in the SADC FTA. Design and implement an automotive policy that enables competitive operating environment. Duty-free access to large export markets is beneficial to the consumer. Import tariffs or age restrictions on used vehicles aimed at stimulating demand for new vehicles. Regulation of grey market in partnership with industry stakeholders Africa Growth is inconsistent, uncertain and timing is also unknown. This makes investment decisions more difficult.

19 THANK YOU