Toyota’s Supplies To Nigerian Auto Market Plunges As Production, Exports Slide

Nigerian subsidiaries of the automaker receive up to 90 per cent of their supplies from the South African plant with the country forming the biggest market for Toyota in Africa.

The TSAM president and chief executive officer,Andrew Kirby, has, however shown optimistic that production and export volumes will meet or exceed 2015 levels by 2017.

Of the 138,000 units assembled at the Prospecton Plant last year, 93,500 units were Hilux bakkies, 10,200 units Fortuner sports-utility vehicles, 26 000 units Corolla sedans and 8,600 units Quantum minibuses.

“Despite having a new Hilux and Fortuner in the model line-up, both launched a few weeks ago, production volumes are expected to decline this year as the production ramp-up of both these models will only be completed in the middle of the year. With the Hilux TSAM’s major export product, exports from the Durban plant are also expected to take a knock this year,” Kirby said.

Export volumes should reach around 52,000 units, down from around 60,000 units in 2015, and exports and production at the TSAM have been in steady decline since 2012 and 2013, respectively.

This is despite the 2013 introduction of government’s new support programme, the Automotive Production and Development Programme which has been lauded by a number of local vehicle manufacturers, the TSAM included, as a policy instrument efficient in boosting production and export volumes.

The TSAM production peaked at around 185,000 units in 2008, with exports reaching 128,000 units during the same year. Kirby said that the decline has not been by choice.