Andrew Kirby, president of the National Association of Automobile Manufacturers (NAAMSA), said two-thirds of the money would be direct investment by the seven automakers with plants in the country, including Toyota Motor Corp and Ford Motor Co, with the remaining 20 billion rand earmarked for car parts.

"Growing production volumes, increasing localisation significantly and using the latest technologies ... are vital to transform the South African automotive industry," Kirby, who also heads Toyota's local unit, said in a statement.