Isuzu launches new operation

By Colin Windell

After several months of total quiet, the revitalised Isuzu was formally launched as Isuzu Motors South Africa (IMSA) and with the news it would be entering the SUV market later this year with the Isuzu mu-X.

All this follows the announcement last year where Isuzu had said that it would purchase the light commercial vehicle operations in Port Elizabeth and also the balance of shareholding in its Isuzu Trucks South Africa operations. 

Speaking at the event, which was held at manufacturing plant in Struandale Port Elizabeth, the President and Representative Director of Isuzu Motors of Japan Masanori Katayama said Isuzu was committed to growing its business in South Africa. 

"This is the first commercial and light commercial vehicle manufacturing operation outside of Japan in which we have acquired a 100% ownership.  We are represented in 30 countries outside of Japan and successfully operate 47 manufacturing plants in these countries with joint venture partners.

"Our decision with regards to South Africa demonstrates the confidence we have in this market and also is indicative of our longer-term view that South Africa will serve as an important base for our future growth on the African continent."

Isuzu is making positive strides in Africa and a year ago the company acquired a 57,7% majority shareholding in the Kenyan truck and bus assembly operation which supplies Isuzu vehicles to East African markets, while commanding a leading 34% share of the Kenyan new vehicle market. 

Isuzu also has a 20% shareholding in joint venture manufacturing operations in Egypt, and where the company has led in the market for 10 years in a row.  The light commercial vehicle pick-up which is produced there and accounts for over 90% share of the market segment, is derived off the Isuzu KB pick-up.

Isuzu Motors South Africa CEO and MD Michael Sacke said the company's initial focus would be to fully consolidate its operations while laying the foundation for the company's future success.  

"Our short-term focus is on implementing our transitional plans, ensuring the sustainability of our operations, further strengthening our product portfolio and relocating the truck operations from Kempston Road to the Struandale plant. As we do this, we will need to demonstrate excellence in everything we do and the ability to lead in key segments of the market."

He said in the medium term the company would need to plan for the successful launch of future products, implement measures to increase its domestic market share and increase its exports into Sub-Saharan Africa markets.

Sacke said that the company was already making good progress in achieving these objectives and last year Isuzu trucks accounted for around 15% share of the medium and heavy commercial market, thus cementing its leadership position in these segments of the market for over five years in a row. 

"In 2017, and in an environment where we were transitioning our business to a new business model, we grew our Isuzu KB volume by 14,8% versus the same period last year.  This gave us a share of 14% in the pick-up D segment of the market, thus demonstrating the confidence that South African consumers have in our brand and vehicles." 

The Minister of Trade and Industry, Dr Rob Davies, said South Africa's automotive industry is a global, turbo-charged engine for the manufacture and export of vehicles and components. He said many of the major multinational firms use South Africa to source components and assemble vehicles for the local and international markets.

"With its ability to link throughout the economy, the government has identified the automotive industry as a key growth sector. The auto industry is important to the future of manufacturing in this country and whatever emerges in the future will be based on a significant level of support for it going forward. The sector contributes 7,5% of South Africa's Gross Domestic Product and employs about 113 000 people directly. It is key to ensuring greater economic growth," said Davies.

The mu-X will be a new entry in the SUV segment for Isuzu, since the introduction of the Trooper and Frontier in 1992 and 1998, says Dominic Rimmer, Executive Technical Services. "This great product, which has been favourable with customers around the world, will extend the Isuzu product range offering customers an option to choose between the rugged and capable Isuzu pick-up and a sophisticated Isuzu SUV for both work and leisure, ensuring they are catered for in the Isuzu family."

The Isuzu mu-X, Isuzu's refined yet robust SUV, has a long proud history of performance behind it with its first introduction to market in Thailand in 2013. The mu-X is currently sold in several countries which include Thailand, Australia and Philippines where it holds the market leader share.

"We are excited about the addition of the mu-X into the Isuzu portfolio, offering customers a SUV originating from a strong brand that is trusted and known for reliability by South Africans."

The mu-X is powered by Isuzu's 3,0-litre engine packed with active safety features. The car-like handling with exceptional ride comfort is supported by a 5-link rear suspension. In addition, the seven seat configurations with ample passenger legroom promise a comfortable ride for the family whether on road or off the beaten track.

Rimmer said the Isuzu mu-X model line-up, specification and pricing will be announced closer to the time of launch.