Section 4. Overseas Business Expands Globally

Item 6. Latin America, Middle East, and Africa


South Africa, Africa's largest market, was subject to strict economic sanctions imposed by the international community until the 1980s as a result of its apartheid policies. The sanctions were lifted in 1991, and South Africa returned to the international stage with the formation of a government by President Nelson Mandela.

TMC conducted a sales promotion campaign entitled "Rising sun" in 1980 and reached the top position for total market share in South Africa that year. TMC subsequently maintained its top position, with cumulative sales reaching 1 million vehicles in 1987 and 2 million vehicles in 1998.

In 1995, the government adopted an automobile industry promotion policy based on developing exports and raising production efficiency, and in response, GM of the United States and other companies that had withdrawn their capital participation in the mid-1980s reentered the market. TMC had engaged in complete knockdown exports through Toyota South Africa (TSA) a holding company of South Africa Toyota Motor, a local production and sales company, and upon request from the government, TMC made an equity contribution to TSA (27.8 percent) in October 1996 and further localized production through technology transfers and other means.

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