Hino South Africa's Strategy for New Energy Vehicles Explained

Hino South Africa has outlined its multi-faceted strategy for new energy vehicles. Itumeleng Segage, General Manager of Hino South Africa, explained the company is pursuing a multipath approach, developing a range of power units to suit different operator requirements.

This strategy includes the continued refinement of internal combustion diesel engines, alongside the offering of diesel-electric hybrids and battery electric trucks in certain markets. The company is also advancing the development of hydrogen as an emission-free power source, with global trials currently underway. Segage noted green hydrogen is considered a suitable energy source for long-haul trucks that operate from depots equipped with refuelling infrastructure.

In South Africa, a trial involving 38 Hino 300 diesel-electric hybrid models is in progress. These vehicles are being operated by customers on a non-ownership basis, with initial data indicating fuel consumption savings in the region of 20%. To facilitate the trial, Hino South Africa is subsidising the acquisition cost. In partnership with Toyota’s mobility brand, KINTO, a low-risk, all-inclusive leasing solution will be provided to selected customers over a four to five-year period.

The Hino 300 Hybrid is designed for urban operations, and five dedicated dealers have been appointed to maintain the vehicles during the trial. The media event also featured a display of the Hino Dutro Z EV, a battery-electric walk-through van already operational in other markets. The van has a one-ton payload and a driving range of 150 km, making it suitable for final mile deliveries. Its 40 kWh lithium-ion battery can be fully recharged in eight hours using a domestic socket.

Satoshi Ogiso, President and CEO of Hino Motors Limited in Japan, addressed the ongoing integration of Hino, Fuso and Daimler into a new global truck entity. Anton Falck, Vice President of Hino South Africa, assured the Hino distribution network and retail model in South Africa will remain unchanged, with a continued focus on the ‘Hino Total Support’ strategy.

Anton Falck (left), the Vice President of Hino South Africa and Itumeleng Segage, 

his General Manager

Falck highlighted the brand’s long-standing presence in the local market, spanning more than 50 years through its parent company, Toyota SA Motors. He attributed the brand’s stability in a competitive market to its reputation for quality, durability and reliability (QDR), which is supported by aftersales service. This is reflected in customer satisfaction surveys; Hino has been ranked first overall in Comparative Customer Satisfaction since March 2020 and has received a Platinum Award in the NADA Dealer Satisfaction Survey for five consecutive years. The loyal client base and committed network of 66 dealers have contributed to an improvement in Hino’s market share, moving from fifth in 2023 to third so far in 2024.

A significant announcement was the introduction of a six-year driveline warranty, provided at no additional cost. This warranty, which is transferable if a truck is sold within its term, is applied retrospectively to vehicles purchased since January 2025.

The warranty is subject to kilometre restrictions dependent on the model and requires adherence to recommended service intervals. Falck described the warranty as an initiative that reflects confidence in Hino’s engineering standards and is supported by its dealer network.

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Illegal Vehicle Imports Hinder African Automotive Goals

ALGIERS – A concerted drive by African nations to build a integrated continental automotive industry is facing a formidable obstacle: the pervasive influx of illegally imported used vehicles and a critical lack of affordable financing for new cars.

This challenge was a central theme at the recent African automotive forum, part of the Intra African Trade Show, where policymakers and industry leaders outlined an ambitious vision to transform the continent from a primary importer of vehicles into a global manufacturing and export hub under the African Continental Free Trade Area (AfCFTA).

Chery Tiggo 2 Pro on display at the Africa Automotive Show in Algiers

A key pillar of this strategy, according to Gainmore Zanamwe, Director of Trade Facilitation for the African Export-Import Bank (Afreximbank), involves “freezing out second-hand vehicles imports” and “incentivising local production” to ensure Africa becomes a “manufacturing hub for mobility” rather than a “dumping ground for vehicles.”

However, this ambition clashes with the current market reality. Data indicates while new vehicle sales across the continent sit at approximately 1,2-million units annually, the number of used vehicle imports, both legal and illegal, far exceeds this figure. In South Africa alone, it is estimated over half a million illegally imported used cars are on the roads, representing a significant drain on national revenue.

“This illegal trade is not just a statistic. It is a direct attack on our economy,” says Martina Biene, President of the African Association of Automobile Manufacturers (AAAM) and CEO of Volkswagen Group Africa: “It drains our fiscus between five and eight billion Rand every year in lost taxes. It undermines our local manufacturers and holds back our industrial development.”

Stellantis stand showing Fiat Panda parts that are made locally

The demand for used vehicles is primarily driven by affordability. High interest rates across many African nations, often reaching double digits, place formal new vehicle financing out of reach for a large portion of the population. Financial institutions also cite challenges with vehicle tracking and valuation as barriers to offering more accessible credit.

“The issue is that high interest rates in most countries are in the two digit levels, and it makes it very difficult for consumers to have access to affordable financing,” added Zanamwe. “This creates a cycle where low demand prevents the economies of scale needed for local factories to produce affordable new vehicles.”

The situation is exacerbated by the practices of some international exporters. Research indicates used vehicles from markets like Japan and Singapore are often sold at very low prices or even written off and shipped abroad, making it impossible for locally manufactured units to compete on price alone.

In response, industry players are exploring innovative solutions. Volkswagen’s mobility solutions program in Rwanda was highlighted as a case study. By offering ride-hailing, car-sharing and subscription services, the model provides access to mobility without the need for a large upfront purchase, effectively addressing the affordability issue through a different business model.

Ultimately, African leaders argue a cohesive policy environment is crucial. This includes finalising the AfCFTA’s rules of origin for automotive products, harmonising standards and developing policies that support localisation while simultaneously creating mechanisms for affordable vehicle asset financing. The success of the continent’s automotive industrialisation depends on its ability to navigate the complex interplay between ambition, consumer reality, and economic policy.

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