Introduction
Toyota South Africa Motors (TSAM) has unveiled its ambitious plans during the annual State of the Motoring Industry address, outlining the introduction of six new vehicle models in South Africa throughout 2024 and 2025. Despite facing challenges such as an elevated repo rate, a depreciating Rand, and persistent load shedding, TSAM’s President and CEO, Andrew Kirby, remains optimistic about the automotive landscape.
Industry Overview: Challenges and Positives
1. Economic Challenges
Kirby highlighted monetary and structural challenges, including an elevated repo rate, a depreciating Rand (13% down on the dollar last year), and a record-breaking 332 days with load shedding. These factors negatively impacted the GDP and business confidence.
2. Automotive Sales Trends
Automotive sales in 2023 started positively, but the industry faced stagnation, resulting in a final tally of 532,098 units, just 0.5% higher than the previous year’s numbers. Despite these challenges, South Africa remains a competitive car market, attracting new entrants and an increased number of individual models.
3. New Entrants and Models
Notably, South Africa saw an influx of new entrants in the automotive market in 2023, with a significant increase in new models, especially in popular segments like B and Sub-B. The Extra Heavy Commercial Vehicle space experienced a surge in new variants, driven by logistical issues in rail transport.
4. New Energy Vehicles (NEVs) Trend
The demand for New Energy Vehicles (NEVs) in South Africa increased by 65% in 2023, with 7,693 units sold. Hybrid variants dominated, constituting 84% of NEV sales. Toyota, in particular, demonstrated resilience in the market, ending the year with its highest volume sold since 2007 and a record market share.
Toyota’s Forward Momentum
5. Six New Models Unveiled
In line with its commitment to the South African market, Toyota announced the arrival of six new models over the next two years. The upcoming releases include mild-hybrid versions of Hilux and Fortuner, the new Land Cruiser 70 Series, and the facelifted Prado, all expected in the next 12 months. Additionally, the bZ4X and electric Lexus RZ will debut in 2025.
6. Embracing New Technologies
Toyota’s foray into mild-hybrid and electric vehicle offerings aligns with global trends and signals the brand’s commitment to embracing new technologies. The models aim to cater to evolving consumer preferences and environmental consciousness.
7. Resilience of Toyota in South Africa
Despite economic challenges, Toyota maintained its stronghold in South Africa, ending 2023 with impressive sales figures. The brand’s popularity, market presence, and diverse offerings contribute to its resilience, securing its position as the best-selling automotive brand in South Africa for 44 years.
Conclusion
Toyota’s announcement of six new models underscores its commitment to meeting the evolving needs of South African consumers and embracing the changing landscape of the automotive industry. As the market anticipates the arrival of these models, Toyota’s resilience and adaptability position it as a key player in shaping the future of mobility in South Africa.
