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Toyota SA invests in SAP upgrades to accelerate digital transformation

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 27 Nov 2025
Sikhumbuzo Ngcobo, managing partner at IBM Consulting South Africa, and Devan Reddy, VP of IT at Toyota South Africa Motors.
Sikhumbuzo Ngcobo, managing partner at IBM Consulting South Africa, and Devan Reddy, VP of IT at Toyota South Africa Motors.

IBM and SAP have jointly delivered two major SAP S/4HANA system upgrades for Toyota South Africa Motors, which the companies say represents a milestone in the automotive manufacturer’s enterprise-wide modernisation journey.

In a statement, IBM says with mainstream support for legacy SAP ECC systems ending in 2027, Toyota’s upgrade serves to enable a seamless transition to SAP S/4HANA while preserving existing business process investments.

According to IBM, this approach minimises disruption, accelerates deployment timelines and ensures continuity for critical operations.

The intention is to drive transformation across several core business functions, including management in phase one, followed by HR in the second phase.

Toyota’s national vehicle management system is a platform for managing orders, inventory, sales and financial reporting across and dealerships.

IBM and SAP say by migrating to SAP S/4HANA, Toyota now benefits from real-time visibility, improved inventory optimisation and faster responsiveness to customer demand.

The second phase focuses on modernising Toyota’s HR systems, including payroll and personnel administration. IBM delivered a streamlined SAP S/4HANA-based HCM platform that the enterprise software firm says simplifies workforce processes and lays the foundation for enhanced talent management and employee engagement.

Sikhumbuzo Ngcobo, managing partner at IBM Consulting South Africa, says: “We are proud to support Toyota South Africa Motors in their digital transformation journey by delivering technology solutions that accelerate innovation and strengthen business resilience. At IBM, we call this the science of consulting – combining human expertise, AI and technology to deliver scalable, data-driven transformations.”

Nazia Pillay, MD southern Africa at SAP, says: “The best companies run on trusted data, optimised business processes and real-time intelligence into every part of the business. By upgrading to SAP S/4HANA, companies like Toyota unlock a suite of intelligent technologies that help transform business processes with intelligent automation.”

According to the statement, IBM and Toyota are collaborating on the next phase of the SAP modernisation programme, which will focus on parts management systems.

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