Toyota Tsusho Starts SKD Production of Fortuner SUV in Kenya
Toyota Tsusho Corporation ("Toyota Tsusho") announced today that it started SKD* production of Toyota Motor Corporation ("Toyota")'s Fortuner SUV at the Mombasa Plant of Associated Vehicle Assemblers Ltd. ("AVA"), a vehicle production contractor in Kenya, on July 29, 2023 (Japan time).
* SKD: Semi-knockdown. A method of vehicle assembly that the welded and painted body is imported and the components parts are assembled with body and chassis, or its parts configuration.
Toyota Tsusho currently produces Toyota's Land Cruiser Pickup, Hilux, and Hiace at the AVA Mombasa Plant. This new production of Fortuner is Toyota Tsusho's first SKD production of an SUV in Kenya, with production planned to be 350 units per year. Demand for SUV vehicles has been increasing in Kenya in recent years, and the market is expected to expand further in the future. Through this SKD production of Fortuner in Kenya, it will be possible to shorten the lead time for supply of the vehicles to customers in Kenya.
To mark the start of production, a production start-up ceremony was held at the plant in the presence of Kenyan President William Ruto; Moses Kuria, Cabinet Secretary, Ministry of Investments, Trade and Industry, Kenya; and Japanese Ambassador to Kenya, Ken Okaniwa.
Based on the "WITH AFRICA FOR AFRICA" philosophy, Toyota Tsusho seeks to grow with the people and communities of Africa, and aims to contribute to the further development of Kenya's automobile industry through the local production of Fortuner.
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Hiace SKD Production Starts in Kenya
Toyota Tsusho Corporation ("Toyota Tsusho"), acting through Toyota Kenya Limited ("TKEN"), began SKD* production of the Toyota Hiace at Associated Vehicle Assemblers Ltd. ("AVA"), a vehicle production contractor, using parts supplied by Toyota Motor Corporation ("Toyota"), on November 9, 2021. The planned Hiace annual production volume is 500 units. Investment associated with the addition of the Hiace as a production model was approximately US$600,000 (equivalent to approximately 70 million yen; including equipment, tools, and training of assembly personnel).
The Hiace vehicles to be produced will be used as matatu, privately-owned minibuses operated in Kenya. Under the "With Africa For Africa" philosophy, which seeks to achieve growth with the African people and African society, the Hiace will be produced locally to provide safe and secure means of public transportation in Africa.
In conjunction with the local production of the Hiace, provision of the MaaS Package, which is intended to enhance the quality of bus services, also started. This package uses a service provided by Data Integrated Limited, which develops and provides operational management systems for bus transportation operators, and is expected to improve bus operation information. Toyota Tsusho invested in Data Integrated through Mobility 54 Investment SAS.
A ceremony marking the start of Hiace production was held at the AVA Mombasa Plant from 10:00 a.m. to 1:00 p.m. (local time; 4:00–7:00 p.m. Japan time) on December 15. Ministry of Industrialization, Trade and Enterprise Development Betty C. Maina, attended the ceremony, at which President Keiji Masui of Toyota Auto Body Co., Ltd. and President Ichiro Kashitani of Toyota Tsusho presented messages via video, conveying their commitment to contributing to Kenya’s further development through production of the Hiace.
* Abbreviation for semi knock down. Unlike completely knocked down (CKD) production, the welded and painted auto bodies are imported, and the main parts are installed on the body and chassis locally. Only relatively simply assembly work is performed.
Corolla cross Line-off Ceremony was held for our first local production for Hybrid Electric Vehicle in African region at Toyota South Africa
The Corolla Cross Line-off Ceremony was held at manufacturing plant of TOYOTA South Africa Motors (Pty) Ltd (TSAM) in Durban.
TSAM hosted the president of South Africa, Mr. Ramaphosa, and the Minister of Trade, Industry & Competition of South Africa, Mr. Patel.
This will be Toyota’s first local production of Hybrid Electric Vehicle (HEV) in African region and we achieved a major step forward in Carbon neutrality with South Africa together.
Also, the introduction of the Corolla Cross and corolla Cross (HEV) has generated a total of 575 new jobs at the TSAM plant while over 1200 direct jobs were created in the component supply base.
The president Mr. Rmaphosa expressed maximum appreciation and expectation for start of production of new model including HEV even in tough situation of Covid19 and shown that government will do utmost to support this new challenge.
Toyota Tsusho Starts First Vehicle Assembly by Japanese Company in Ghana - Toyota Hilux to be followed by assembly of Suzuki Swift in 2022 -
Toyota Tsusho Corporation (“Toyota Tsusho”) announced that TOYOTA TSUSHO MANUFACTURING GHANA CO. LIMITED (“TTMG”) became the first Japanese company to start vehicle assembly in the Republic of Ghana by beginning assembly today of Toyota Motor Corporation’s (“Toyota”) Hilux pickup truck. The commencement of operation at TTMG was marked by an onsite ceremony, during which it was announced that the company also plans to start SKD* production of Suzuki Motor Corporation’s (“Suzuki”) Swift compact car from 2022.
President of the Republic of Ghana Nana Addo Dankwa Akufo-Addo, Ghana’s Minister of Trade and Industry Alan John Kwadwo Kyerematen, and Japanese Ambassador to Ghana Tsutomu Himeno attended the ceremony, at which TTMG President Akira Yamada donated a Hilux to Ghana’s Ministry of Trade and Industry.
At the ceremony, Toyota Tsusho President & CEO Ichiro Kashitani stated via a video message: “Our African business has a history of more than 90 years. Based on our philosophy of ‘WITH AFRICA FOR AFRICA’, we seek to contribute to African society and the economy of Africa while further reinforcing and expanding our business foundations. Starting today through this project, we will go on to deliver the ‘production of happiness for all’ to the people of Ghana, as well.”
Speaking directly in front of those present at the ceremony, Toyota Tsusho COO for Africa Division Shinichiro Otsuka said: “To contribute to the social and economic development of Ghana, we will promote the production of high-quality cars that are made in Ghana. In addition, by providing high-quality sales and after-sales service at our distributors, we will continuously support the safe and secure lives and businesses of the people of Ghana.”
TTMG is the fifth vehicle production base of the Toyota Tsusho Group in Africa, after Kenya, Egypt, Nigeria, and Rwanda, and is located in the Ghanaian city of Tema (30 km from the capital Accra). It is the Toyota Tsusho Group's first vehicle assembly plant in West Africa, with an annual production capacity of 1,300 units based on an investment of approximately 7 million U.S. dollars. It has approximately 50 employees and currently conducts SKD production of the Toyota Hilux pickup truck.
Also, the planned SKD production of the Suzuki Swift compact car announced today is based on a collaboration agreement concluded between Toyota and Suzuki in March 2019. It is planned as part of strengthening and expanding the alliance between Toyota Tsusho, which received the full transfer of sales and marketing operations in Africa from Toyota in January 2019, and Suzuki.
Going forward, in addition to engaging in the automobile sales business, Toyota Tsusho intends to tailor local production to market needs, further contributing to the development of the automobile industry in Africa.
*Semi knock-down. A method of vehicle assembly that only requires simple processes such as the tightening of bolts.
■Overview of TTMG
Company Name : TOYOTA TSUSHO MANUFACTURING GHANA CO. LIMITED
Location : Tema, Republic of Ghana
Capital : 3 million U.S. dollars
Shareholder : Toyota Tsusho 100％
Representative : Akira Yamada, managing director
Established : June 2020
Business Description : Automobile assembly and production
Production Vehicles : Toyota Hilux (Production of Swift planned from 2022)
Production Volume : 1,300 units/year
■TTMG production models: Toyota Hilux
■TTMG production models: Suzuki Swift (planned)
Note: The Suzuki Swift shown here is the model currently imported and sold in Ghana and may differ from the model that TTMG plans to produce.
Toyota Tsusho Acquires License for Vehicle Assembly Business in Ghana
- A first SKD for a Japanese company – (Announced November 2, 2020)