Onwards and Upwards As Isuzu SA Invests R580 Million to Support Local Parts Suppliers for New D Max Bakkie

Onwards and Upwards As Isuzu SA Invests R580 Million to Support Local Parts Suppliers for New D Max Bakkie

  • Japanese vehicle manufacturer Isuzu adamant about using locally-sourced car components for its D-Max bakkie built in Gqeberha
  • The brand has invested R580 million to make sure local businesses reap the rewards of the manufacturing process
  • The D-Max bakkie, now in its seventh generation went on sale in April 2022 sporting a new engine

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Isuzu Motors South Africa has invested R580 million to support component localisation. This investment includes the provision of the supplier tooling needed to manufacture specific components in preparation for the recently launched all-new seventh-generation D-Max bakkie.

This has been a four-year journey for the Japanese company and one they have travelled together with their local suppliers, as they embarked on a new sourcing strategy at the beginning of 2018. The process included classifying local suppliers that had the technical capability to manufacture a list of the brand's components required for the new bakkie.

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Isuzu Motors South Africa invests R580 million over half a billion rand in local suppliers
Isuzu Motors South Africa CEO Billy Tom (left) and Japanese ambassador to South Africa, H.E. Norio Maruyama. Image: Quickpic
Source: UGC

Localisation is the process where an increased percentage of the parts and costs of a motor vehicle is either assembled or manufactured in South Africa rather than imported, Quickpic reports.

This process represents a significant opportunity to transform the automotive sector and usher in the entry of Broad-Based Black Economic Empowerment (B-BBEE) participants into its supply chain. The vehicle maker has maintained an automotive industry-leading B-BBEE Level One for a second consecutive year.

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According to the Citizen , Isuzu has driven localisation as a key strategic imperative for the business and its stance is aligned to the South African Automotive Masterplan’s (SAAM) set target and aspiration of ensuring local value addition of 60% by 2035.

Onwards and Upwards As Isuzu SA Invests R580 Million to Support Local Parts Suppliers for New D Max Bakkie
The new Isuzu D-Max uses locally-sourced parts. Image: Quickpic
Source: UGC

Billy Tom, Isuzu SA President and CEO says:

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"Localisation is essential in transforming the automotive sector. SAAM 2035 could see the automotive industry growing from 600 000 to 1,4 million vehicles a year in production. This presents a huge opportunity for us to support black-owned automotive suppliers in building their businesses in the industry. It will help drive transformation and create jobs.”

With the R580m investment, suppliers now have the necessary machinery and equipment required to manufacture the components needed by Isuzu. Through this process the company has had the opportunity to work with 107 local component manufacturers, maintaining a local value add content footprint and creating at least 235 new job opportunities at local component manufacturers.

Onwards and Upwards As Isuzu SA Invests R580 Million to Support Local Parts Suppliers for New D Max Bakkie
The Isuzu D-Max in its seventh generation has been built in Gqeberha, for close to 45 years. Image: Quickpic
Source: UGC

One such example of our localisation strategy is the partnership between Isuzu SA and 73% black-owned supplier Acoustics, based in Gqeberha. They were awarded both the sound and carpet assembly contracts specifically for the new bakkie. Responsible for the manufacturing of smaller boot liners, Acoustics have assisted the brand in achieving an industry first through the installation of local vinyl mats.

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Isuzu’s new D-Max bakkie storms Into Mzansi, we have pricing and specifications for the full 23 model line up

The all-new Isuzu D-Max is the seventh generation of Isuzu bakkies to be manufactured in Gqeberha over the past 42 years and is the culmination of an R1,2 billion investment in Isuzu’s local operations, announced in 2019, Briefly News reports.

It is produced for the domestic market in South Africa and exported to 25 left and right-hand drive markets across the African continent.

On the engine front, the D-Max is available in two engine configurations, Quickpic reports. A 1.9-litre Ddi powerplant is a new powertrain and is standard on all Single Cab models and is available on Extended Cab and Double Cab derivatives. It produces 110kW and peak torque of 350 Nm available between 1 800 to 2 600 r/min.

Source: Briefly News

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